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.
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