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The Secretary of Labor, Robert Reich, initiated a lawsuit against Prive Corporation, Priba Corporation, and Salah Izzedin (collectively Cabaret Royale) alleging violations of the Fair Labor Standards Act of 1938 (FLSA). Following a bench trial, the court ruled that Priba and Prive constituted an enterprise and Izzedin was an employer under the FLSA, making them jointly and severally liable. A key finding was that the club's topless entertainers were employees, not independent contractors, and their earnings were tips. The court determined that Priba violated FLSA's minimum wage provisions by not paying entertainers and by deducting tip out fees, and both Priba and Prive committed record-keeping violations. The court granted an injunction against future violations and referred the calculation of back wages and other compensation to a special master.
Reich v. Priba Corp. is a workers' compensation case decided in District Court, N.D. Texas. This case addresses legal issues related to compensation claims, benefits, and court rulings.
It is commonly referenced in legal research involving workers' compensation laws in District Court, N.D. Texas.
Full Decision Text1 Pages
The Secretary of Labor, Robert Reich, initiated a lawsuit against Prive Corporation, Priba Corporation, and Salah Izzedin (collectively Cabaret Royale) alleging violations of the Fair Labor Standards Act of 1938 (FLSA). Following a bench trial, the court ruled that Priba and Prive constituted an "enterprise" and Izzedin was an "employer" under the FLSA, making them jointly and severally liable. A key finding was that the club's topless entertainers were employees, not independent contractors, and their earnings were tips. The court determined that Priba violated FLSA's minimum wage provisions by not paying entertainers and by deducting "tip out" fees, and both Priba and Prive committed record-keeping violations. The court granted an injunction against future violations and referred the calculation of back wages and other compensation to a special master.
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