Hurricane Betty's settles lawsuit of former dancers who sought full wages

WORCESTER — Southbridge Street adult entertainment club Hurricane Betty's settled a class-action lawsuit that claimed dozens of former exotic dancers employed at the club were not paid full wages for their work. The settlement in U.S. District Court was filed Monday.

The conditions of the settlement and any payments to former employees are not publicly available.

In 2020, former employee Leah Saad filed a class-action lawsuit claiming the owners of the club, at 350 Southbridge St., violated the Federal Fair Labor Standards Act as well as the state minimum wage and tips laws.

Saad's suit claims the club failed to pay dancers hired as hourly employees the state tipped minimum wage, required the dancers pay the club a "kickback fee" that left them with no hourly profits or a net loss, regularly deducted or reassigned tips, and issued employees incorrect tax forms that did not reflect net wages.

Ten years ago, four dancers from Hurricane Betty's were awarded money from a class action lawsuit in Worcester Superior Court alleging similar failures to pay wages.

During the time Saad was employed, the tipped minimum wage in the state was $4.35 an hour. As of January, the tipped minimum wage is now $6.75 an hour.

The lawsuit alleges Hurricane Betty's issued IRS W2 forms reflected a wage of $4.35 per hour, including tips.

Saad claimed the club owed her "free and clear" minimum wage compensation of $29,000.

Hurricane Betty is owned by the LLC Jolo Inc., whose manager is Myles O'Grady. O'Grady is listed as a defendant in the suit.

When the suit was initially filed, Saad claimed the wage class of former dancers exceeded 50, and she sought consolidation. U.S. District Court Judge Timothy S. Hillman granted the motion to establish a class of former employees in the lawsuit last year.

Hillman granted a summary judgment from Saad last September.

This article originally appeared on Telegram & Gazette: Hurricane Betty's settles lawsuit of former dancers who sought full wages