
Our guest columnist this morning is Christel E. Marquardt, judge on the Kansas Court of Appeals.
In July 2002, Milano’s acquired a controlling interest in Club Orleans, a gentlemen’s club. In 2004, Milano’s designated their entertainers as independent contractors.
In response to an unemployment claim submitted by a Milano’s entertainer, the Unemployment Tax Contributions Unit of the KDOL [Kansas Department of Labor] began an investigation to determine whether Milano’s entertainers are employees or independent contractors. After the investigation, the KDOL auditor determined that the entertainers are employees for unemployment tax purposes…
The hearing officer cited Club Orleans’ house rules and concluded “there are sufficient indicia of control, or at least the right to control, that the facts of this matter point to an employer-employee relationship.” The hearing officer determined that although the owner of Milano’s testified that customers frequented Club Orleans for the “good atmosphere, good lighting and good food,” the facts indicate that the “atmosphere largely derives from and is based upon the presence of its semi-nude dancers.”…
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