DANCERS SUE EMPLOYER CLAIMING RECLASSIFICATION AS EMPLOYEES WAS RETALIATION

Employers are well aware of classification issues as to whether workers are employees or independent contractors.  Use of independent contractors offers great advantages to employers, including saving of payroll taxes and the avoidance of union and employment claims.  On the other hand, there is widespread litigation over misclassification issues. 

One employer recently received the worst of both worlds.  A class of exotic dancers in California sued their employer alleging their reclassification as employees and related reduction of pay was in retaliation for their previous lawsuit.  Although the employer contended it was required to reclassify the dancers as a result of a California Supreme Court ruling, the dancers contended that the employer was not required to reduce their pay in the process.  The case is Jane Loes 1-3 v. SFBSC Management LLC, Cal. Super. Ct., complaint filed 1/29/19.

Editor's Note:  This lawsuit, if valid, puts employers in a "damned if you do, damned if you don't" situation.  The lesson to be learned from the case is that hard facts may make bad law, and that employers should seek competent employment counsel in carrying out such reclassifications.