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Denver Labor protects the rights of all workers, including those at strip clubs

RICK’S CABARET | Establecimiento señalado en la investigación por exigir pagos indebidos a sus trabajadoras. (Fotos/ X).

the Auditor at your service

Timothy M. O’Brien, CPA, Auditor of Denver

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In February, my office issued wage theft determinations against Diamond Cabaret and Rick’s Cabaret. My Denver Labor division ordered the strip clubs and their owner, RCI Hospitality Holdings, to pay $11.3 million in wage restitution and $2.6 million in fines and to stop violating workers’ rights.

We found they routinely committed wage theft against all types of workers, including servers, bartenders, DJs, house moms, entertainers, and others. Diamond Cabaret and Rick’s Cabaret have taken tips belonging to workers, violated Denver’s minimum wage law, illegally required entertainers to pay fees to work, and misclassified entertainers, DJs, house moms, and perhaps others. Additionally, Denver Labor has found Diamond Cabaret illegally retaliated against numerous employees.

Documentation from workers aided our investigation. For example, at Rick’s Cabaret, each night, tipped workers were required to place a portion of their earnings into what’s called “The Rusty Envelope,” named for the regional manager. Information like this helps strengthen the case that wage theft occurred. We strongly encourage workers in ANY industry to keep records if they have wages stolen. It is strong evidence to prove wage theft occurred.

Denver Labor protects the rights of all workers, including those at strip clubs

Our findings were so significant, my team created a special website, DenverGov.org/StripClubs, where people can read these wage determinations and learn more about strip club workers’ wage rights.

These investigations show my commitment to protecting all workers in the City and County of Denver, no matter what type of work they do. They are protected by Denver’s wage laws, which means workers are entitled to Denver’s minimum wage ($18.81 per hour in 2025), and to work free of wage theft.

Wage theft occurs when workers don’t receive the wages they have earned. This can include managers taking tips for work they perform, being paid less than minimum wage, overtime violations, not receiving paid rest breaks, and not receiving paid sick leave.

Denver Labor protects the rights of all workers, including those at strip clubs

I know that many people may be afraid of contacting my office to ask about wage rights. Denver Labor will not ask about the worker’s country of origin or immigration status during an investigation. The city’s ordinances and my team protect anyone regardless of their immigration status.

You can also speak to my team anonymously. Simply create a new email address and write to us at wagecomplaints@denvergov.org. We are here to serve and protect you.