Two strip clubs in Denver have been ordered to repay millions of dollars to their employees following a years-long investigation by the Denver Auditor’s Labor Division.
The investigation uncovered widespread wage theft, including improper pay deductions, misclassification of workers, and failure to meet minimum wage and overtime requirements. Officials say the ruling is a major victory for labor rights and highlights ongoing efforts to hold businesses accountable for fair pay practices.
The clubs must now compensate affected workers, with the total amount owed reaching into the millions. Local labor advocates hope the decision will set a precedent for stronger enforcement of wage laws across the city.
The investigation, which began after multiple worker complaints, found that club management engaged in unlawful pay practices, including improper wage deductions, failure to pay minimum wage, and misclassification of employees as independent contractors to avoid providing benefits. Some workers also reported being forced to pay out-of-pocket fees to work each night, further reducing their earnings.
Denver Auditor Timothy O’Brien emphasized the importance of holding businesses accountable.
“Wage theft is a serious issue that affects hardworking individuals trying to support themselves and their families,” O’Brien said. “This decision ensures that workers are fairly compensated for their labor.”
One former employee, who spoke anonymously, said the ruling was a long-overdue step toward justice.
“For years, we were told that this was just how the industry works,” she said. “But that doesn’t make it right. We deserve to be paid fairly like any other worker.”
The clubs are expected to issue back pay to affected workers, and additional penalties may be imposed if they fail to comply. The ruling is being hailed as a major victory by labor rights advocates, who argue that wage theft is a widespread issue in the service and entertainment industries.
City officials are also using this case to push for stronger enforcement of wage laws across Denver, ensuring that workers in all industries are protected from similar exploitation.