9th Circ. Undoes 'Problematic' $2M Strip Club Wage Deal

Law360 (December 12, 2019, 4:47 PM EST) -- The Ninth Circuit vacated a $2 million settlement meant to end a suit brought by exotic dancers who alleged 11 San Francisco nightclubs misclassified them as independent contractors, pointing to problems with the deal's attorney fees arrangement, subtle signs of collusion and shoddy class notice.

A three-member panel ruled Wednesday that a federal magistrate improperly granted final approval to the $2 million settlement, siding with objectors who called the deal — which allocated $864,115 for the 4,681 proposed class dancers and $950,000 for attorneys — "a pittance given what we're entitled to." By failing to closely examine the details of the deal, the...

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