HR Management & Compliance

FLSA: Pennsylvania Strip Club Can’t Force Stripper to Arbitrate

By Gregory J. Wartman, JD

A Pennsylvania federal court recently ruled that an arbitration agreement that a strip club forced an exotic dancer to sign was unenforceable because it imposed an involuntary, unknowing loss of collective action and class action rights under the Fair Labor Standards Act (FLSA).

Jessica Herzfeld began working as an exotic dancer at the Gold Club in Philadelphia in 2006, and she continued to work at the club until 2014. In 2014, she filed a federal lawsuit against her former employer alleging violations of the FLSA.

She sought to recover (1) unpaid minimum wages, (2) unpaid overtime wages for hours worked over 40 in a workweek, and (3) liquidated damages. She also filed a class action on behalf of the club’s Pennsylvania dancers for violations of the Pennsylvania Minimum Wage Act and the Pennsylvania Wage Payment and Collection Law.

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