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Carpenter & Zuckerman and Ellzey & Associates Law Firms Win $212K Jury Verdict Against Austin’s Yellow Rose Adult Entertainment Club For Multiple Fair Labor Standards Act Violations
AUSTIN, Texas, Aug. 23, 2022 /PRNewswire/ — The trial law firms Carpenter & Zuckerman (CZ Law) and Ellzey & Associates have won a $212K jury verdict against Austin’s Yellow Rose Adult Entertainment Club for multiple Fair Labor Standards Act (FLSA) violations against two dancers from 2017 through 2020. The case was tried in the United States District Court for the Western District of Texas.
U.S. District Judge Robert Pitman, like 50 other federal judges, ruled that the two dancers were employees of the defendant, the Yellow Rose – a point which the Yellow Rose unsuccessfully tried to dispute. Trial lawyers John Kristensen of CZ Law and Jarrett Ellzey of Ellzey & Associates successfully proved to jurors that the Yellow Rose failed to pay the dancers minimum wage as required by law, knew or showed reckless disregard for its conduct which was prohibited by the FLSA, required and/or coerced the dancers to pay Yellow Rose portions of their own tip monies and required and/or coerced the dancers to pay fees or fines to the Yellow Rose for the business’ own benefit.
“The Yellow Rose took up to $250 a shift from the dancers in direct violation of the Fair Labor Standards Act,” said Ellzey. “The jury rightfully held the Yellow Rose accountable for its illegal practices.”
Through the trial, it was revealed that the Yellow Rose forced the two dancers to pay other Yellow Rose employees, such as DJs and managers, as well as the Yellow Rose itself, a “daily license fee” or “house fee” upon arrival to work. Once they finished their shifts, the dancers would again be required to pay DJs and managers of the Yellow Rose, who controlled their ability to leave through “bye-bye” slips which required a DJ and manager’s signature before the dancers’ shifts could formally end.
“Too often, adult entertainment clubs will utilize unscrupulous tactics to carry out wage theft against the very dancers who bring people to their businesses in the first place,” said Kristensen. “The jury’s ruling against the Yellow Rose sends the message that this illegal behavior will not be tolerated.”
The Yellow Rose must pay the dancers a total of $212K in wage theft damages. CZ Law and Ellzey & Associates will be filing to double the damages as liquidated.
About Carpenter & Zuckerman
The California law firm of Carpenter & Zuckerman is dedicated to fighting for the rights of the injured. CZ Law is dedicated to helping clients recover the compensation they deserve for their injuries. For more information or to schedule a free consultation, visit www.cz.law today.
About Ellzey & Associates
Ellzey & Associates, PLLC is a Texas law firm that aggressively advocates their clients’ interests in a wide range of legal disputes, including labor, consumer, and catastrophic personal injury cases. Ellzey & Associates is based in Houston, Texas, and represents clients nationwide.