Denver’s Diamond Cabaret and Rick’s Cabaret and Steakhouse have been ordered to pay $14 million in penalties and back pay to workers due to stolen wages. This comes after an investigation by Denver Auditor Tim O’Brien, who called it one of the most extraordinary cases he has ever conducted. The clubs, owned by RCI Hospitality Holdings, Inc. must pay over $11 million in restitution to affected workers for wage theft practices, including requiring strippers to pay fees to work and taking a portion of tips from food and beverage workers. The investigation revealed that dancers and other workers were exploited by the clubs, with some going home with less money than they started with due to fees.
Denver Labor Executive Director Matt Fritz-Mauer stated that the investigation is just the tip of the iceberg and that more litigation is expected. RCI Hospitality Holdings, a multimillion-dollar adult entertainment company, owns over 80 similar venues across the country. The company has challenged subpoenas related to the investigation, claiming that it is being unfairly targeted and its workers’ autonomy is being violated.
In addition to the wage theft investigation, RCI is facing other legal challenges, including a lawsuit against the town of Central City in Colorado over the opening of a Rick’s Cabaret and Steakhouse venue. The company alleges that its civil rights were violated when the town denied its request to open the establishment. The future of the venue is uncertain, with Central City Mayor Jeremy Fey declining to comment on the situation. Despite the challenges, workers like Devynn Dewey, who strips to pay for college, are speaking out against the exploitation they have faced, highlighting the need for accountability in the adult entertainment industry.
