Recently, the Nevada Supreme Court in Terry, et al., v. Sapphire Gentlemen’s Club, reversed a lower court’s ruling and held that performers at Sapphire Gentlemen’s Club meet the definition of “employees” under the Nevada Revised Statutes (NRS). For the first time, the court explicitly adopted the federal Fair Labor Standards Act’s (FLSA) “economic realities” test for assessing independent contractor versus employee status under Nevada law. The court concluded that as employees, these performers are entitled to be paid minimum wage for all hours worked.
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