The U.S. Supreme Court on Monday declined to consider the validity of arbitration agreements that exotic dancers at a South Carolina club signed after the club was sued for allegedly misclassifying dancers as independent contractors.
The high court’s decision not to hear Crazy Horse Saloon and Restaurant Inc’s appeal leaves in place the 4th U.S. Circuit Court of Appeal’s January ruling that the agreements were unenforceable. The 4th Circuit panel said Crazy Horse improperly attempted to use arbitration as an “insurance policy” to escape liability rather than as an “efficient alternative to litigation,” as it had litigated the case for three years before asking to send it to arbitration.
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