New York strip club sued over tip dispute

NEW YORK (Reuters) - An upscale New York strip club was sued on Wednesday by a former bartender who says the wait staff and dancers were cheated out of tips.

Siri Diaz filed suit in U.S. District Court in Manhattan against Scores, charging that it paid her and others a subminimum wage while also taking a share of their tips.

The suit allows other workers at Scores to join the case as plaintiffs. It names Scores Holding Company and its units Go West Entertainment and Scores Entertainment as defendants.

A spokeswoman for Scores declined to comment, saying the company had yet to see the lawsuit.

The law allows some wait staff to earn less than the federal minimum wage -- currently $5.85 per hour -- but in such cases the employer must allow employees to keep all their tips, a lawyer for Diaz said.

The suit says that Scores, which has two locations in New York, kept a portion of tips made with "Diamond Dollars" -- a type of currency used in the club.

Employees could only redeem their Diamond Dollars tips at restricted times, and then Scores would take a commission, the suit says.

Scores shares were down 14 percent in afternoon trade.