Comment on Strip clubs sue to stop Denver’s first wage theft subpoenas

Strip clubs sue to stop Denver’s first wage theft subpoenas

Three strip clubs are asking a Denver judge to stop city investigators from collecting dancers’ contracts, contact information and pay records in a first-of-its-kind wage-theft probe. RCI Holdings, which owns PT’s Showclub, Diamond Cabaret and PT’s Centerfold, sued the city’s Labor Division this week. It claims that the division’s issuance of “overreaching and unjustified” subpoenas is “an alarming abuse of power” that threatens privacy rights. RELATED: Denver subpoenas 3 strip clubs in first use of new tool to investigate wage theft “It appears to the clubs’ legal counsel that Denver Labor is operating with the belief that they have unfettered access to private business records, wasting thousands of taxpayer dollars in an attempt to unilaterally bolster the limited and narrow subpoena powers granted to them by City Council,” RCI said in a statement when asked about Tuesday’s lawsuit. “We are committed to ensuring that this investigation proceeds within legal and reasonable boundaries and fully intend to bring Denver Labor to answer before the district courts in vehement defense of our legal and ethical business practices,” it added. In April, the Denver City Council voted unanimously to give Denver Labor the power to subpoena documents from companies that are suspected of stealing wages.

 

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