Ex-Magic City Dancer Files Lawsuit Alleging Tip Theft, Retaliation, and Toxic Workplace
A former dancer at Atlanta’s iconic Magic City strip club is suing the venue, alleging wage theft and a toxic workplace culture.
Courtney Hale, who worked at Magic City from September 2022 through September 2023, filed a federal lawsuit in late March, alleging violations of the Fair Labor Standards Act (FLSA), WSB TV Atlanta reports.
The suit, filed in the Atlanta Division of the U.S. District Court for the Northern District of Georgia on March 27, claims that Hale was required to hand over a portion of her nightly tips to management and pay kickbacks to DJs, security staff and others—practices she argues are illegal under federal labor law.
“The termination of Hale’s employment by Magic City was substantially motivated by retaliation for her requests to be properly paid minimum wage and her earned tips in accordance with the [Fair Labor Standards Act],” the complaint states.
Hale claimed that a club manager “confiscated” her pay in the amounts of “tens of thousands of dollars from her,” ranging from $500 to $1,500 at a time, two to three times per week.
Hale’s lawsuit also described Magic City as a “sexually hostile work environment,” though no specific incidents were detailed in the court filing. She is now seeking unpaid wages, liquidated damages, and a jury trial.
However, the popular Atlanta nightlife staple has denied the allegations. Gary Freed, the club’s attorney, said in a statement that no harassment claims were ever brought to management during Hale’s tenure.
“She signed employment agreements which Magic City contends she has breached concerning defamation, disparagement, and publication of confidential information, all on social media,” Freed said. “She was sent two cease and desist letters to no avail. She also signed an arbitration agreement which Magic City will seek to enforce.”
Freed added that “Magic City believes all wages paid to Ms. Hale were appropriate, legal, and substantial” and that the club plans to “defend the lawsuit and arbitration vigorously.”
At the time of this article’s publishing, the case has not yet gone to trial, and no court date has been set.
