A hearing is scheduled in Detroit Federal Court on a $6.5 million dollar settlement involving more than 28-thousand exotic dancers at the Deja Vu clubs across the country.
Dancers had charged they were not paid any wages, and were required to pay rent to clubs along with 30 percent or more of their tips.
The case centered on whether the dancers were employees or independent contractors.
It’s a classification which determines issues such as whether the club would have to pay them a minimum wage, or can instead, charge them for doing business in the clubs.
Deja Vu said most dancers prefer being independent contractors because they can make more money, but offered the proposed settlement agreement.
One dancer says the settlement offer is too small, noting the large number of complainants.
Detroit Federal Court Judge Stephen Murphy gave the agreement his preliminary approval pending today’s fairness hearing.
