Stripping Away Misclassifications: FLSA, Exotic Dancers, and the Legal Fallout

In this episode of The Lieb Cast, we dive deep into the Fair Labor Standards Act (FLSA) and its role in classifying workers as either employees or independent contractors. Using landmark cases like Clincy v. Galardi South Enterprises, Inc., where Atlanta exotic dancers reached a $1.55 million settlement, and a nearly $4.6 million ruling involving Philadelphia’s Penthouse Club, we explore the elements used to determine worker classification. These cases expose how much control an employer must exert over a worker’s conditions for them to be classified as employees—and how clubs, like these, exploited misclassifications to their advantage.

We also tackle the complex topic of sexual harassment in the workplace, triggered by the shocking lawsuit accusing Macy’s of covering up a 2008 sexual assault committed by Sean “Diddy” Combs at their Herald Square store. We’ll discuss the company's duty to report harassment and how vicarious liability comes into play when business relationships take priority over accountability. This episode is a must-listen for anyone wanting to understand how these issues intersect with corporate responsibility and employee protections.