The third factor in determining whether a worker is an employee, under the fair labor standards act, is described as:
"The amount of the alleged contractor's investment in facilities and equipment."
Facilities and equipment at Shakers included things like stage, lighting, furniture, bar, DJ equipment and the building itself. All of these things were bought by the club. The dancers, who the club alleges were not employees, invested little if any money in objects or supplies used solely for their jobs.
While strip clubs sometimes attempt to argue that objects like makeup and lingerie are proof that dancers are contractors investing in their own businesses, these objects are basic hygiene and living expenses that any other employee would use. Strip clubs like to ask plaintiff dancers if they deducted any of their personal hygiene and grooming objects on their taxes. However, these kinds of objects cannot be deducted if used outside of the workplace.
The investment that the club makes in maintaining the business running is overwhelmingly in favor of employee status.