Two Denver strip clubs, Diamond Cabaret and Rick’s Cabaret, have been ordered to pay nearly $14 million in restitution and penalties for wage theft. The Denver Auditor’s Office found that these clubs violated multiple provisions of Denver’s minimum wage and civil wage theft ordinances, affecting bartenders, servers, DJs, and entertainers.

The investigation, which began in May 2023, revealed that wage theft was a systemic issue at these clubs. The clubs were found to have misclassified dancers as exempt from wage laws, failed to pay the minimum wage, and required entertainers to pay fees for the privilege of working. Additionally, the clubs misclassified workers as tipped food and beverage employees to pay them a sub-minimum wage while taking a share of their tips.

The Diamond Cabaret, operated by Glenarm Dining Services, was found to have underpaid every tipped employee by $3.02 per hour for more than two years. The club also imposed various fees on dancers, including an $85 “house fee” and an $8 “promo fee,” and fined them for rule violations. These practices resulted in significant financial losses for the workers.

The Denver Auditor’s Office emphasized that the clubs’ business models were designed to depress staff income and divert money to management. The office is working to hold the clubs accountable and ensure that affected workers receive the restitution they deserve.

©️ The Rocky Mountain Dispatch LLC. 2025