Alaska Employment Law

Several dancers have sued Crazy Horse and Fantasies for unpaid overtime compensation, involuntary deductions resulting in denial of minimum wage, impermissible tip pool, and non-receipt of final paychecks.  They sued under both the FLSA and AWHA, and seek class certification of both the FLSA (as a collective action) and state (under ARCP Rule 23) claims.

Acting on the employer’s motion, Judge Burgess:

1)  refused to dismiss plaintiffs’ claim for reimbursement of tips that they were required to pool for other employees.  The Court held that the employer failed to show that bouncers, doormen, DJ’s, and houseparents are occupations in which employees “customarily receive tips,” a prerequsite for legitimating the tip pool; and

2)  refused to resolve defendants’ request that the Court apply the FLSA opt-in procedure to plaintiff’s AWHA claim (rather than the Rule 23 opt-out procedure).  Burgess held:

The Court sees no compelling reason that distinguishes this case from the numerous cases that have allowed Rule 23 opt-out class actions to proceed parallel to FLSA opt-in collective action claims.  Additionally, the Court finds that it cannot decide that the FLSA’s opt-in procedures should be applied to plaintiffs’ state law claims at a time when the Court has not yet certified a FLSA collection action.

Both parties apparently agreed that a claim to recover impermissible fees and tips is governed by the 3-year contract limitations period.

Thornton v. Crazy Horse,  Inc., 3:06-cv-00251 TMB (D.Alaska Order of Nov. 5, 2007).

Ken Legacki represents plaintiff dancers.  Wendy Leukuma and William Evans of Dorsey & Whitney represent the clubs.

11/05/07 Order