Thursday, July 25, 2019

Can You Advise? Strip Club Asks For Compensation Model That Won’t Bankrupt It


Photo Credit: New York Times (July 25, 2019)
Sent: Wednesday, July 24, 2019 6:23 PM
To: Leroy, Michael H <mhl@illinois.edu>
Subject: News Article
Mr. LeRoy:
I read your comments in a recent New York Times article regarding adult club entertainers and the compensation programs under which they perform.

We have found that most dancers refuse to perform under an employment model because they don’t like the impact on their taxes (i.e. they are required to report 100% of tips earned), nor do they like having to work within a schedule (an unfortunate necessity of operating a business with high hourly payroll).  They also seem to reject not being able to take breaks at their leisure and having to wait for a bi-weekly paycheck.  I know from extensive experience with both models.
I was wondering since you seem to have done legitimate research on the topic, what you feel would be a workable compensation model that would not leave a club bankrupt?
--
Ryan
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For context, I was interviewed in connection with a feature article on the pay and working conditions of strippers.
My 2017 study found that strippers won 93% of their wage lawsuits.
Common practices in strip clubs: Performers are required to share their pay with bar tenders, DJs, “house moms,” and bouncers—and, pay a rental fee for a changing room, and pay a fee to be on the stage, and be docked pay for being late to work. Dancers cannot, however, set their tips above house-imposed levels.  Some women in my cases earned negative wages (paid out, received no pay).
These conditions are especially exploitative for strippers but there are clear signs that more mainstream jobs are going to this pay-the-boss model.
Examples: Insurance agents pay their employer fees for office cubicles; cable installers are docked when customers complain of service; ride-share drivers and delivery couriers pay for gas, insurance, vehicles; nurses are docked hourly pay for not meeting standards. The list goes on.
***
If you have advice for Ryan, send it to me at mhl@illinois.edu. Think about adopting a professional alias, since that is a common way that Ryan interacts with his employees. I call dibs on Witch Hunt … and yes, I like to cover up when I work!
Photo with UIUC Colleague at a Residence Hall

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