Denver moves to shut down Diamond Cabaret over wage theft allegations

In an unprecedented show of force, Denver licensing officials this week moved to revoke the operating permit for the Diamond Cabaret strip club over allegations of rampant wage theft, retaliation and noncompliance with city orders.

The city’s Department of Excise and Licenses sent the adult venue an “order to show cause” on Wednesday, giving the business’ owners a chance to tell regulators next month why they shouldn’t have their license suspended or revoked.

This is the first time Denver has taken disciplinary action to revoke a business license as a result of a wage theft investigation, city officials said.

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Wednesday’s actions mark the latest salvo in an increasingly bitter dispute between Denver and the Diamond Cabaret over its long-running business practices.

Since May 2023, Denver’s labor division has completed six investigations related to the downtown strip club, alleging “widespread wage theft, repeated acts of retaliation and other illegal acts” committed by the club and its managers, the order states.

Denver Labor’s probes found the club misclassified DJs and other laborers as food and beverage workers; allowed managers to routinely take tips for work performed by dancers; violated minimum wage laws for bartenders, servers and hosts by paying them below minimum wage and requiring them to share tips; and imposed fees that dancers must pay every night in order to work.

Read more from our partners at The Denver Post.

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