New York State Court Rules Strip Club Owes Unemployment Insurance to Dancers

September 1, 2016

A midlevel state court has ruled that a suburban Syracuse, N.Y., strip club’s dancers are employees, and the company owes unemployment insurance payments on their behalf.

The four Appellate Division justices have rejected the challenge to rulings of Unemployment Insurance Appeal Board by Greystoke Industries, operator of Paradise Found in Dewitt.

They cite “substantial evidence” to support the finding that it exercised sufficient control over the dancers to establish an employment relationship, despite evidence that could support “a contrary result.”

They note that the dancers could set their schedules and provide their own music and costumes.

However, the club requires they provide proof of age and citizenship, decides when they are “unappealing” and can no longer perform and sets prices for private dances, taking a percentage.

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