Question: Circle C Investments operated two nightclubs featuring topless dancers The
Circle C Investments operated two nightclubs featuring topless dancers. The secretary of labor sued to compel Circle C to comply with the minimum wage and maximum-hours provisions of the Fair Labor Standards Act, which applies only to employees, not independent contractors. Circle C required the dancers to comply with weekly work schedules, to charge at least $10 for table dances and $20 for couch dances, and to mingle with customers when not dancing. Circle C enforced the rules by fining infringing dancers. Dancers supplied their own costumes and padlocks for personal lockers. One dancer spent $600 per month on costumes, but another spent only $40 per month. A dancer's initiative, hustle, and costume contributed significantly to her tips. Circle C was responsible for advertising the club, choosing its location, and business hours, creating club aesthetics, and establishing a food and beverage menu, all of which attracted customers to the club. Dancers did not need long training or highly developed skills to dance at the club. Most dancers had a short-term relationship with Circle C. Were the dancers employees or independent contractors for purposes of the Fair Labor Standards Act?
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