Gentlemen's Club Owner To Pay $300K To Employees - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

Gentlemen's Club Owner To Pay $300K To Employees

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Amarillo, TX - An Amarillo Gentlemen's Club owner has agreed to pay $300,000 in a federal wage and hour lawsuit toward 21 employees.

The lawsuit was filed last year after two employees claimed the owner of Beavers Gentlemen's Club, Cheetah's and Babe's Gentlemen's club was refusing to pay D-J's, Bartenders, Security Personnel, Servers and Greeters any wages at all.

It is undetermined what the employer did with this money, but the Plaintiff's Attorney, Jeremi Young, said the defendant was giving collected tips to managers to compensate for the money he didn't have to pay their salaries.

Each employee working off tips is required to receive the pay of $7.25, according to the Fair Labor Standards Act.

If an employee works off of tips, they are still required to be paid hourly minimum wage.

According to FLSA, an employee working off tips can be paid a minimum of $2.13, yet must be compensated by the amount of tips to achieve an hourly pay of $7.25.

If these tips do not amount to the minimum wage standard, the employer cannot count the amount of tips because no credit is available.

If this is the case, there is a violation in minimum wage law.

The settlement will pay 21 employees unpaid wage amounts ranging from $2,312 to $27,565.

Young said the amount owed by the Defendant is not up for dispute, yet it's just a matter of the Defendant paying voluntarily before a justified judgment has to be made.

He also said he might have to look at forcing the sale of Beavers to satisfy the judgment if the Defendant cannot come up with the money owed to his employees.

However, there are ways for employees to track their tip amounts to keep from being cheated by an employer.

Young said employees should keep track of their own tips.

They can do so by keeping a note card or notepad.

This will help the employee keep up with every tip given by a customer to be tallied at the end of every shift.

After adding the amounts, employees should double check to see if the employer documented each tip correctly.

Young said in cases where an employee feels they have been cheated, they can file a complaint on the Department of Labor's website.