Wage Theft Determinations

Glenarm Dining Services owns and operates Diamond Cabaret, a popular strip club in Denver. The club depends on the hard work of its entertainers, servers, bartenders, and other workers who create the hospitality experience which attracts clients—and the club’s operations involve widespread wage theft against those very workers who make the business successful.

On May 4, 2023, Denver Labor proactively opened a wage investigation into Diamond Cabaret. We did so based on research establishing that bars and restaurants, and especially strip clubs, are at high risk for wage and hour violations. This investigation bore fruit and revealed that wage theft is part and parcel of the club's business model. Over the course of years, the club has stolen millions of dollars from its workers, including bartenders, servers, DJs, and entertainers.

This Determination addresses two groups of workers, all of whom have suffered violations of their fundamental wage rights on every shift for more than two years:

1. Workers classified by the Diamond as tipped employees, including bartenders, servers, barbacks, and DJs. And,
2. Entertainers (also called strippers or dancers), whom the Diamond misclassifies, pays nothing to, and steals money from.

For the first group, the Diamond violates Denver’s Minimum Wage Ordinance (MWO) and Civil Wage Theft Ordinance (CWTO) (together, the “Ordinances”) in two primary ways. First, managers illegally take a share of employees’ tips. Under applicable law, managers cannot keep any portion of the tips in question, which belong to and are earned by bartenders, servers, and entertainers.

Second, the Diamond pays less than the required minimum wage to many of its employees. Under normal circumstances, businesses may pay a sub-minimum wage to qualified food and beverage workers who regularly receive tips from customers. But because it requires employees to share tips with managers, the Club has lost the privilege of the sub-minimum wage. The Diamond has underpaid every tipped employee by $3.02 per hour for every hour worked for more than two years.

During the time period covered by the Division’s investigation, the Diamond stole millions of dollars from its tipped workers. These violations are no accident, nor do they reflect a good faith misunderstanding of the law. They are the result of a system designed to depress staff income and divert money to managers and the Club itself.

Read the determination(PDF, 1MB)

Stout Dining Services owns and operates Rick’s Cabaret, a popular strip club in Denver. Rick’s depends on the hard work of its entertainers, servers, bartenders, and other workers who create the hospitality experience which attracts clients—and the club’s operations involve widespread wage theft against those very workers who make the business successful.

On July 8, 2024, Denver Labor proactively opened a wage investigation into Rick’s. We did so based on research establishing that bars and restaurants, and especially strip clubs, are at high risk for wage and hour violations. This investigation revealed that wage theft is part and parcel of the strip club's business model. Over the course of years, the club has stolen millions of dollars from its workers, including bartenders, servers, DJs, and entertainers.

This determination addresses two groups of workers, all of whom have suffered violations of their fundamental wage rights on every shift for more than two years:

1. Workers classified by Rick’s Cabaret as tipped employees, including bartenders, servers, barbacks, and DJs.
2. Entertainers (also called strippers or dancers), whom Rick’s Cabaret misclassifies, pays nothing to, and steals money from.

For the first group, Rick’s Cabaret violates Denver’s Minimum Wage Ordinance (MWO) and Civil Wage Theft Ordinance (CWTO) (together, the “Ordinances”) in two primary ways. First, managers illegally take workers’ tips. Under applicable law, managers cannot keep any portion of the tips in question, which belong to and are earned by bartenders, servers, and entertainers.

Second, Rick’s Cabaret pays less than the required minimum wage to many of its employees. Under normal circumstances, businesses may pay a sub-minimum wage to qualified food and beverage workers who regularly receive tips from customers. But because it requires employees to share tips with managers, the club has lost the privilege of the sub-minimum wage. Rick’s Cabaret has underpaid every tipped employee by $3.02 per hour for every hour worked for more than two years.

During the time period covered by Denver Labor's investigation, Rick’s Cabaret stole millions of dollars from its tipped employees. These violations are no accident, nor do they reflect a good faith misunderstanding of the law. They are the result of a system designed to depress staff income and divert money to managers, the club, and the club’s owners.

Read the determination(PDF, 854KB)

Glenarm Dining Services owns and operates Diamond Cabaret, a popular strip club in Denver. On May 4, 2023, Denver Labor opened an investigation into Diamond Cabaret to investigate whether and to what extent it was committing wage theft in violation of Denver's Minimum Wage and Civil Wage Theft Ordinances.

During this investigation, Denver Labor interviewed approximately half a dozen individuals who work or have worked at Diamond Cabaret. This determination concerns one in particular: K.G., who bartended at the strip club for more than 12 years without any performance issues, including the last three under the current ownership.

K.G. sought to enforce the ordinances on behalf of herself and her coworkers. She provided Denver Labor with a significant amount of evidence and information regarding Diamond Cabaret's wage practices.

Shortly after learning about K.G.'s protected activity, the strip club engaged in a series of questionable, suspect, and retaliatory acts.

This determination resolves two of Denver Labor's inquiries. The first examines whether Diamond Cabaret unlawfully implemented a policy prohibiting recording in retaliation of the protected activity of K.G. and others. The second inquiry addresses Diamond Cabaret's decision to fire K.G.

In both instances, Diamond Cabaret broke the law. To rectify these violations of K.G.'s civil rights, Diamond Cabaret is ordered to:

1. Pay to the City and County of Denver penalties for retaliation equal to $10,000, based on $5,000 fines for each retaliatory act committed against K.G. Because Denver Labor also finds that another employee bears individual responsibility for K.G.' retaliatory firing, he and the Diamond are jointly and severally liable for $5,000 of this fine. Alternatively, the Diamond may pay K.G. $4,500 per act of retaliation. For each unlawful act resolved in this manner, Denver Labor will waive the $5,000 statutory fine for retaliation.
   
   
2. Reinstate K.G. and place her in the position she would have been in had the club never retaliated against her.
   
   
3. Pay K.G. $2,014.18 as restitution for the wages and tips she would have earned had the Diamond not unlawfully fired her the day of the VIP Christmas party, which she was scheduled to work.
   
   

Read the determination(PDF, 279KB)

Glenarm Dining Services owns and operates Diamond Cabaret, a popular strip club in Denver. On May 4, 2023, Denver Labor opened an investigation into Diamond Cabaret to investigate whether and to what extent it was committing wage theft in violation of Denver’s Minimum Wage and Civil Wage Theft Ordinances.

This determination concerns one of the strip club's former employees in particular: D.D., who bartended at the club under its current ownership for more than two years without any performance issues.

D.D. sought to enforce the ordinances on behalf of herself and her coworkers. She provided Denver Labor with a significant amount of evidence and information regarding Diamond Cabaret's wage practices. She also put Denver Labor in touch with other witnesses, filed complaints on behalf of herself and her colleagues, served as a witness for a former coworker, and prepared to serve as a witness at a hearing.

Shortly after learning about D.D.’s protected activity, Diamond Cabaret engaged in a series of questionable, suspect, and retaliatory acts. On December 10, the Diamond fired D.D. On December 12, it fired two of her coworkers, bartenders who were her friends, confidantes, and who had also provided information to Denver Labor. The ultimate decisionmaker was the club’s General Manager.

This determination resolves three of Denver Labor’s inquiries into Diamond Cabaret. The first examines whether the strip club committed wage theft by denying D.D. paid sick leave on three occasions; the second is whether the Diamond unlawfully set out to enforce a policy prohibiting recording in retaliation for the protected activity of D.D. and others; and the third addresses the strip club's decisions to suspend and terminate D.D.

In each instance, Diamond Cabaret broke the law. To rectify these violations of D.D.’s civil rights, Diamond Cabaret is ordered to:

1. Pay D.D. restitution of $1,159.16 in damages and interest for the wage theft it committed against her by failing to pay her sick leave for missed shifts.

2. Pay to the City and County of Denver a penalty equal to $1,000 for its paid sick leave violations. To induce compliance by Diamond Cabaret, this penalty shall increase to $3,000 on February 3, 2025, and to $5,000 on February 19, 2025 absent payment of the restitution described.

3. Pay to the City and County of Denver penalties for retaliation equal to $15,000, based on $5,000 fines for each retaliatory act committed against D.D. Alternatively, Diamond Cabaret may pay D.D. $4,500 per act of retaliation. For each unlawful act resolved in this manner, Denver Labor will waive the $5,000 statutory fine for retaliation.

4. Reinstate D.D. and place her in the position she would have been in had the club never retaliated against her.

5. Pay to D.D. $949.14 as restitution for the tips she would have earned had Diamond Cabaret not unlawfully placed her on paid administrative leave, which caused her to miss work shifts.

Read the determination(PDF, 1MB)

On September 13th, 2024, the Denver Labor division of the Denver Auditor’s Office (“Denver Labor”) received credible information alleging that Glenarm Dining Services d/b/a Diamond Cabaret (“Diamond Cabaret” or the “Employer”) had stolen Worker’s wages and had taken adverse action against her for exercising her rights under the Denver Minimum Wage and Civil Wage Theft Ordinances (“MWO,” “DCWTO,” and together, the “Ordinances”). Upon receipt of this information, Denver Labor contacted Worker and, after carefully reviewing her allegations, opened an investigation.

On September 24th, 2024, Denver Labor sent to Diamond Cabaret a Notice of Investigation regarding these issues. Diamond Cabaret responded to the allegations on October 8th, 2024. Denver Labor requested additional information on October 25, 2024, and Diamond Cabaret provided a partial response on November 20, 2024.

Denver Labor considered all available evidence, provided Diamond Cabaret with a full opportunity to address the allegations, and now issues this Liability and Penalty Determination. If the Employer and Worker resolve this matter amicably within 14 days of the date of this Determination, Denver Labor will waive applicable penalties.

Read the determination(PDF, 235KB)

While proactively investigating three strip clubs (Diamond Cabaret, PT’s Showclub, and PT’s Centerfold), Denver Labor issued subpoenas seeking a) copies of contracts between the clubs and dancers, b) contact information for dancers, and c) records of payments made to and received from dancers. The clubs challenged the subpoenas and claimed they were overly burdensome, sought confidential information, and fell outside of Denver Labor’s authority. After reviewing arguments and evidence, a hearing officer upheld Denver Labor’s authority to issue subpoenas; found the sought-after information was relevant; and determined that Denver Labor had provided adequate guarantees that confidential information would be kept private. The hearing officer also modified the subpoenas based on Denver Labor’s request.

Read the order(PDF, 323KB)

On May 28, 2024, the Denver Labor Division of the Denver Auditor’s Office (“Denver Labor” or the “Division”) opened an investigation into AWS. AWS is a staffing agency operating throughout the United States, including in Denver. But unlike most staffing firms, AWS broke nearly every applicable wage and hour law. It denied its employees basic information about their rights, all while systematically violating them. It stole an extraordinary amount of money from its low-income workers. It frequently failed to pay minimum wage and overtime. It routinely denied paid sick and safe leave to its employees, who overwhelmingly work in hospitality, food service, and warehousing roles — exactly the kinds of close-quarters jobs where sick leave is most important.

But there’s an additional wrinkle. In 2023, Denver Labor investigated AWS’ parent company for these exact same issues.

• AWS committed thousands of legal violations. Frequently, flagrantly, and to great profit.
  
  
• Instawork withheld an extraordinary amount of payroll data while being investigated — data that Denver Labor specifically requested and Instawork claimed, falsely, it provided. This information encompasses nearly 14,000 shifts and at least 1,467 employees.
  
  
• The Employers are not, in any meaningful way, separate.

Read the determination overview(PDF, 145KB)

* Full determination can be requested by email at Auditor@DenverGov.org.

ORDER

"For the reasons stated herein, the Appellant’s request for dismissal of any prevailing wage determination – or, in the alternative, for an Order determining that “residential construction prevailing wages be issued” to the Mothership project – is hereby dismissed for lack of merit, and the Denver Labor wage determination of building classification is affirmed.

Urban Peak may seek review of the Decision and Order pursuant to the Prevailing Wage Ordinance, Sec. 20-76(g)(4), Rule 106(a)(4) of the Colorado Rules of Civil Procedure, and according to the time limits or other criteria stated therein."

Read the final determination(PDF, 1MB)

Garuda Labs, Inc. d/b/a Instawork (“Instawork” or the “Employer”) is an app-based staffing company operating in Denver and the surrounding area. Instawork provides workers—which it calls “Professionals” or “Pros”—for clients who operate in the hospitality, warehousing, and retail industries. These individuals work shifts directly for Instawork’s clients, filling a variety of frontline roles as servers, bartenders, dishwashers, line and prep cooks, general laborers, and housekeepers. 

Extensive investigation by Denver Labor reveals that Instawork has violated and is violating nearly every applicable wage and hour law. Since October of 2020, Instawork broke Denver’s minimum wage ordinance more than 1,000 times, failed to pay overtime more than 700 times, and did not provide nearly 3,000 workers with notice of their rights under Denver law.

Determination for Instawork Garuda Labs Inc.(PDF, 747KB)

Gigpro, Inc. (“Gigpro”) is an app-based staffing company operating in Denver and the surrounding area. Gigpro provides workers—called “Pros”—for clients in the hospitality industry, including hotels, restaurants, and caterers. Pros fill “gigs,” working a variety of frontline hospitality jobs as servers, bartenders, dishwashers, line and prep cooks, and housekeepers. See Ex. A, Column J. For both Gigpro and its clients, these workers are classified as independent contractors.

Extensive investigation by Denver Labor reveals that Gigpro’s model has violated nearly every applicable wage and hour law. Workers suffered minimum wage violations; did not receive the Auditor’s Office-required notice of rights; and have been subject to policies that prohibited them from engaging in certain protected activity. 

 As this determination more fully explains, in Denver alone Gigpro has violated Denver’s Civil Wage Theft Ordinance nearly 1,000 times since July 2022. Gigpro has violated HFWA more than four hundred fifty times by denying its workers the right to accrue paid sick leave based on time worked, and has unlawfully passed on the costs of workers’ compensation insurance to Pros by deducting $.38 per hour of work for Occupational Accident Insurance (OAI). Because the law defines paid sick leave as “wages” and prohibits employers from imposing on employees the costs of 2 workers’ compensation insurance, each of these acts also constitutes a violation of Denver’s Civil Wage Theft Ordinance.

Gigpro has rectified each of these specific problems and Denver Labor exercises its discretion to take no further action on them.

Determination for GigPro Inc.(PDF, 752KB)

Introduction

On July 3rd, 2023, “Worker” filed a credible wage complaint with the Denver Labor division of the Denver Auditor’s Office (“Denver Labor”). Worker alleged his former employer (the “Employer”) failed to pay him minimum wage in violation of Denver’s Civil Wage Theft Ordinance (“the Ordinance”).

On August 9th, 2023, Worker filed a credible retaliation complaint against Employer. Denver Labor opened investigations into these matters and provided notice to the Employer via first-class mail sent to its owner, (the “Owner”). Employer responded to the allegations, is represented by competent counsel, and had a full opportunity to present its evidence and defenses.

Denver Labor has considered all available evidence and now issues this Liability Determination. If this matter is not resolved within 14 days of the date of this Liability Determination, either through compliance or settlement, Denver Labor will conduct further investigation and issue a Penalty Determination.

Read the determination(PDF, 300KB)

Conclusions of Law and Order: Cross-Motions for a Decision without a Hearing

"MY LEGAL CONCLUSIONS ARE LARGELY EMBEDDED in the statement of the facts: I conclude that Next Wave failed to present enough evidence in the investigatory phase of this dispute to entitle it to a hearing in which it could attempt to establish, by a preponderance of the evidence, that Denver Labor erred in its determination that commissions were owed on seven of the eight jobs for which a claim is made. I will therefore deny Next Wave’s Motion, and grant Denver Labor’s Motion to the extent consistent with this conclusion.

Denver Labor is Ordered to recalculate its Determination within no more than 14 days from the date of this Decision and Order, excluding the Slack Job and updating the interest through the date of the recalculation, and to provide a figure for daily interest accruals through the date of payment."

Read the determination(PDF, 1MB)

Find below the information you need about Civil Wage Theft and Minimum Wage Ordinances:

• Denver's Civil Wage Theft Rules(PDF, 720KB)
• Denver's Rules for Appeals and Hearings(PDF, 593KB)
• Denver Labor Subpoena Power(PDF, 739KB)
• La autoridad de emitir órdenes de comparecencia de Denver Labor(PDF, 673KB)
• Mandatory Work Site Poster (2024)(PDF, 496KB) (English; español)
  • አማርኛ(PDF, 1MB)
  • 简体中文(PDF, 1MB)
  • 한국인(PDF, 1MB)
  • Tiếng Việt(PDF, 1MB)
• Wage Brochure for Workers (2024)(PDF, 454KB) (English)

• Español(PDF, 454KB)
• አማርኛ(PDF, 471KB)
• 한국인(PDF, 556KB)(PDF, 458KB)
• Tiếng Việt(PDF, 458KB)

• Day labor anti-wage theft playbook | Manual contra el robo de salarios para trabajadores(PDF, 381KB) (English, español)
• Citywide Wage Resources for Employers(PDF, 659KB) (English) | Recursos salariales de la ciudad para empleadores(PDF, 666KB) (español)
• Citywide Minimum Wage Ordinance(PDF, 243KB) 
• Minimum Wage Overview(PDF, 166KB) (English) |  Resumen del salario mínimo(PDF, 164KB) (español)
• Citywide Minimum Wage Investigation Summary(PDF, 176KB)
• Recordkeeping(PDF, 468KB)  
• Tip Credit Tracker for Food and Beverage Industry(PDF, 964KB)
• Underpayment Calculator for Employers(XLSX, 62KB) 

If you have questions about Denver's Minimum Wage Ordinance or want to submit a wage complaint, please contact us by phone or by email. Denver Labor is here to help.

CALL: 720-913-WAGE (9243)
EMAIL: wagecomplaints@denvergov.org