On December 17, 2024, United States District Judge Madeline Hughes Haikala approved a $595,000 settlement on behalf of former dancers of the Birmingham, Alabama gentlemen’s club Sammy’s, and its owners Sammy Russo and Patricia Cantavespre. In total 26 dancers received payments from Sammy’s and some received up to $40,000 net (in their pockets after costs and fees).
The dancers claimed they were misclassified as independent contractors, forced to pay kickbacks in the form of “house fees” and coerced into subsidizing other Sammy’s employments under the guise of “tips”.
Our office, along with EKSM, LLP and Schilleci & Tortorici, was able to obtain evidence from a former manager who provided declaratory testimony that Sammy Russo and Patty Cantavespre verbally instructed [him] that this is a “tipping business” and that dancers were “strongly suggested” to tip the D.J. security, waitresses, house mom and bartenders. The manager “was directed to ‘cancel’ dancers who did not tip which meant that such dancers would not be allowed to work at the club.” He was told by Samy Russo to “cancel” dozens of dancers who violated this rule.
Judge Haikala made sure the settlement adequately compensated the dancers. Despite social media posts to the contrary, all the money did not go to the dancers. Patricia Cantavespre posted on social media that the dancers were only entitled to about $400 according to her estimates. The average net settlement to the dancers who did not accept the defendants lowball Rule 68 Offers was $18,235.29. That means 17 dancers received on average $18,235.29 in their pocket.
If you believe you were misclassified as an independent contractor in any industry, contact us for a free evaluation.