DENVER — Three Denver strip clubs are suspected of violating their dancers' labor rights. In a news release, the Denver Auditor's Office said it's investigating wage theft at PT's Showclub, PT's Centerfold and Diamond Cabaret.
The clubs are suspected of misclassifying dancers as non-employees to avoid paying them minimum wage, overtime and earned tips. The auditor's office said the clubs have not produced any financial records.
Denver City Council voted in April to give the auditor's office subpoena power to perform audits. This is the first time the office is using that power. The auditor's office is hopeful the subpoena will speed up its investigation.
"It's a win for Denver's workers that we had this process in place in time," Auditor Timothy O'Brien said in a news release. "This is the first time we are using this subpoena power and without it, we would be unable to conduct our investigation into whether dancers' rights are being violated."
The auditor's office is requesting three years' worth of contracts, contact information and payment records of dancers at each location.
The clubs have until Sept. 24 to respond to the subpoenas. After that, they will face fines of up to $1,000 a day, according to the auditor's office.
All three strip clubs are owned by the same company, RCI Hospitality Holdings, Inc.
In a statement, an attorney representing the strip clubs called the subpoenas "overreaching" and "unjustified."
The statement says in part, "In the Clubs' opinion, Denver Labor is sending the message that they are willing to ignore the bounds of the law in an effort to collect private data and information from individuals who are not under their jurisdiction."
The attorney said the clubs are prepared to go to court to fight the subpoenas and defend their business practices.
The auditor's office said it hasn't reached a conclusion in the investigation yet.
PT's Showclub on West Evans Avenue recently faced unrelated legal trouble. The club was shut down for two weeks in January following allegations dancers were engaging in prostitution.