Updated Tuesday, Nov. 25, 2025 at 10:30 a.m.
A Denver District Court judge has upheld a ruling that strip club workers have protections under the city’s wage and employment laws, rejecting the companies’ attempt to shut down a city investigation that had resulted in millions of dollars in penalties.
The ruling follows a Denver Auditor’s Office investigation into four strip clubs that operate in the city. Investigators used newly expanded subpoena powers to attempt to obtain documents from the strip clubs, and issued daily fines when they refused.
The investigation found hundreds of workers at two strip clubs, Diamond Cabaret and Rick’s Cabaret, had their wages stolen because they were misclassified in order to exempt them from labor laws and forced to pay fees to work. In February, the auditor ordered the strip clubs to pay $14 million in back pay and penalties to those workers, which neither has paid.
The clubs subsequently appealed the decision, saying it was a “reckless abuse of power”.
The four strip clubs challenged the legality of the investigation, arguing that strip club entertainers are “licensees” and therefore not subject to Denver wage laws. They also alleged other flaws and that a hearing officer had a conflict of interest.
Judge Jon J. Olafson issued an order on Nov. 20, affirming two previous decisions from a hearing officer that allowed the investigation and fees to stand. The club’s appeal alleged that the hearing officer overstepped her jurisdiction in multiple ways by allowing the investigation to stand, which Judge Olafson disagreed with.
“I’m thrilled the District Court recognized our legal authority to enforce sex workers’ rights. We remain steadfast in doing what’s right for all workers in Denver,” Denver Labor Executive Director Matthew Fritz-Mauer said in a statement.
The club owners have appealed to the state Court of Appeals and filed a separate lawsuit in federal court. In a statement, the strip club's lawyers characterized Olafson's ruling as "erroneous".
"The Clubs are confident they are on the right side of the law and will continue to fight to protect their rights and the rights of their workers to work in Denver in the manner in which they choose," a statement from the clubs and their lawyers said.
Editor's note: This story was updated with comment from the strip clubs.
