Can a business cap an independent contractors price for their services?

UPDATED: Oct 2, 2022

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Can a business cap an independent contractors price for their services?

I’m an exotic dancer at a strip club
and I want to know if they’re able
to designate the prices for
lapdances. Also where would I find
laws/regulations regarding dancers?

Asked on September 7, 2019 under Business Law, New Mexico


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

You are looking too specifically: don't look for laws regarding rates, pay, etc. for dancers, but look at the law and regulations regarding when someone is and is not an independent contractor. You can find those rules on the U.S. Dept. of Labor and the IRS websites.
To oversimplify, an independent contractor is independent: she controls her own schedule and determines how much to charge for her services, among other things. If a business controls how much you can charge and also controls other aspects of your work (e.g. yhour hours or schedule; details what you can and cannot do at work; etc.) you may be an employee, not an independent contractor. If you should legally be considered an employee, they'd have to pay the employer portion of withholding tax for you and pay into unemployment for you; you'd likely be eligible for overtime; you may be eligible for any other benefits (e.g. health insurance) they provide their employees--that is, if you are an employee, you must be paid and compensated as one.
Go to the DOL and IRS websites and look up what they say about when someone is or is not an independent contractor. If you think you should be considered an employee, you could then contact the state dept. of labor about filing a "misclassification" complaint.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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