BIRMINGHAM, Ala. — The Furnace, a gentlemen’s club on 28th Street North in Birmingham, has agreed to pay $1.25 million to resolve a federal lawsuit filed by three former dancers who alleged the club failed to pay minimum wage and overtime.
The lawsuit, brought in U.S. District Court, claimed the dancers were classified as independent contractors and compensated only through tips from customers. Court records revealed that dancers also surrendered a portion of those tips to cover payments for other staff, in violation of federal labor standards. A judge’s ruling concluded the dancers had been misclassified as contractors and were actually employees entitled to back pay and damages.
The Furnace has been a fixture of Birmingham’s nightlife for more than two decades, operating as the city’s only gentlemen’s club since opening at its current location. Over the years, the club has become known for its adult entertainment in the city’s downtown area, attracting both longtime locals and visitors. Developed by Graham and Greg Jackson in the early 2000s, The Furnace was built with the intention of revitalizing Birmingham’s entertainment district and has maintained a prominent spot in the local scene since.
Following the settlement, court documents unsealed in August confirmed the $1.25 million payout. The case has brought renewed attention to labor practices within adult entertainment venues and serves as a cautionary example for similar establishments whose employment policies may not align with wage laws.
No club representatives commented publicly on the settlement as of Tuesday.