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Scores in Tip Skimming Suit

Scores in Tip Skimming Suit
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Jan 27, 2008 6:00 AM PST    Text size: 
NEW YORK – Gentlemen's club chain Scores is involved in a lawsuit that claims the company skimmed tip money destined for entertainers.

The suit was filed in Manhattan Federal Court by former Scores bartender Siri Diaz, who is seeking class-action status representing more than 100 Scores employees in New York, Chicago, Las Vegas and New Orleans.

The suit contends that Scores skimmed 10 percent of its entertainer's lap dance fees, paid less than minimum wage and did not pay for overtime or for uniforms. The lawsuit is seeking back pay and unpaid overtime compensation for affected personnel.

One central issue of the case revolves around "Diamond Dollars," a type of play money, akin to the poker chips used in casinos. Diamond Dollars are bought by customers using a credit card, and then used to tip Scores employees and entertainers.

Scores, the suit claims, keeps 10 percent of this money as a surcharge for converting the "Diamond Dollars" back into cash. The company also reportedly charges customers a $20 fee for every $100 in "Diamond Dollars" they use their credit card to purchase; making for a double-ended cash flow.

"The customers think they're tipping $20 when they're only tipping $18," Justin Swartz, a lawyer with the Manhattan law firm Outten & Golden, told the NY Daily News. "It seems like a greedy money grab."

The "Diamond Dollars" portion of the claim is limited to Scores' New York locations.

Representatives for Scores were not available for comment at press time.

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