Independent contractor or employee

The distinction exists and it matters

When you start at a club you will be treated either as an independent contractor or as an employee. Most clubs in most places default to contractor. Some treat dancers as employees, often because of local law or legal challenges. The label changes a great deal about your working life, and many dancers go years without knowing which applies to them.

This page is general, not legal advice. The rules differ between countries, states and provinces, and sometimes cities. If any of this affects you, talk to an accountant or employment lawyer who works with dancers.

What each one generally means

As an independent contractor, you are broadly treated as a business providing a service to the club:

• You typically pay house fees and tip-outs to work.
• You usually set your own schedule within the club's rules.
• No taxes are withheld from your money; you handle your own.
• You may be able to deduct business expenses.
• Employment protections such as minimum wage, overtime or unfair dismissal rules may not apply to you.

As an employee, the club is your employer:

• You are typically paid a wage, which may be low, plus tips.
• Taxes are usually withheld and reported by the club.
• Employment law generally applies, including minimum wage and anti-discrimination protections where they exist.
• The club usually has more control over your schedule, appearance and conduct.
• House fees and fines are often not permitted in the same way, though clubs sometimes find other ways to recover costs.

Neither is automatically better. Contractors keep more control; employees have more protection.

Why this is contested

In many places the law decides your classification by how the work actually operates, not by what the club calls it. A club that sets your schedule, controls your appearance and fines you for breaking rules may be treating you like an employee while calling you a contractor. Dancers in several countries and states have challenged this, sometimes successfully.

Where you work, the position could be settled, unsettled or changing. Do not assume what is true for a friend in another city applies to you.

What to do in practice

• Ask the club directly how you are classified and what paperwork you will sign. Read anything before signing it, and keep a copy.
• Keep your own records of every shift, fee, fine and payment, whatever your classification. If the question ever matters, your records will.
• If you are a contractor, treat yourself like a business: track income and expenses, set aside money for tax, and get an accountant who knows the industry.
• If your classification seems wrong, or a club's fines feel unlawful, speak to a professional in your area before acting. Dancer advocacy groups in some places can point you toward one.

Understanding your status will not change it overnight, but it will stop you being surprised.