Thursday, February 28, 2013
Exotic Dancer's Are Employees, Not Independent Contractors
After a seven year legal battle, the Supreme Court of Kansas ruled that exotic dancers were employees rather than independent contractors. The court's reasoning in the case, Milano’s v. Kansas Department of Labor Contributions Unit, was based on the amount of control the establishments exercised over their dancers. The club, in this case, forced the exotic dancers pay rental fees for the stage and other services, mandated how much the dancers could charge for services, governed how they could conduct themselves during work hours, and they had to click in and out of their shifts. If the exotic dancers violated any of the rules or conditions they could be subject to fines or termination. The court stated in their opinion that, "ample substantial competent evidence in the record before us demonstrates that Milano’s possessed such a right of control over the dancers at Club Orleans,” to consider them employees rather than independent contractors. Following the court's decision, dancers may now receive unemployment benefits if they are fired, and the clubs must contribute towards the state funds that pay those benefits.
You can find guidance to help you determine if a worker is an employee or a contractor on the IRS website by clicking here.