Case 1:23-cv-04398-TWT Document 1 Filed 09/27/23 Page 1 of 25

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION

JANICE CHRISTINE OWEN, Individually

and on behalf of those similarly situated,

Plaintiff, CIVIL ACTION FILE NO.

v.

TATTLE TAIL, INC. d/b/a “Tattletale

Lounge, DENIS KAUFMAN, and
RICHARD R. SCHRONCE,

Defendants.

PLAINTIFF’S COLLECTIVE ACTION COMPLAINT

Plaintiff Janice Christine Owen (“Owen”), Individually and on behalf of

those similarly situated, brings this Collective Action Complaint against

Defendants Tattle Tail, Inc. d/b/a “Tattletale Lounge” or “the Tattle Tale,” Denis

Kaufman, and Richard Schronce (collectively “Defendants”) as follows:

INTRODUCTION

1. Plaintiff and the collective she represents are former or current

employees of TATTLE TAIL, INC. d/b/a Tattle Tale Lounge or “the Tattle Tale,”

DENIS KAUFMAN (“Kaufman”), and RICHARD SCHRONCE (“SCHRONCE”).

2. Defendants herein, TATTLE TAIL, INC, KAUFMAN, and

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SCHRONCE, own and/or operate an adult entertainment club in Atlanta, Fulton

County, Georgia known as the “Tattle Tale” or “Tattletale Lounge.”

3. DENIS KAUFMAN (“Kaufman”) is the owner, CEO, and CFO of

Tattle Tail, Inc and the owner of the Tattle Tale.

4. RICHARD SCHRONCE (“Schronce”) is and was at all times relevant

hereto the general manager of the Tattle Tale.

5. Defendants herein failed to pay Plaintiff and other similarly situated

entertainers the minimum wage and overtime wage for all hours worked in violation

of 29 U.S.C. §§ 206 and 207 of the Fair Labor Standards Act, 29 U.S.C. § 201 et.

seq. (“FLSA”).

6. Defendants also required Plaintiff and similarly situated entertainers to

make certain payments to Tattle Tale employees and others which caused Plaintiffs’

(and those similarly situated) wages to drop below the minimum wage and

applicable overtime wage, thereby constituting illegal deductions under the FLSA;

these unlawful deductions were an illegal retention of earned tips under the FLSA.

7. At times relevant to this action, Defendants took a tip credit on

entertainer hourly wages and paid Plaintiff and the collective the tipped wage

without establishing a tip pool, dropping Plaintiff and the collective below the

minimum wage for all hours worked.

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8. As a result of Defendants’ violation of the FLSA, Plaintiff and the

similarly situated entertainers she represents seek all unpaid minimum and overtime

wages, recovery of unlawful deductions, liquidated damages, interest, and attorneys’

fees and costs pursuant to 29 U.S.C. § 216.

JURISDICTION AND VENUE

9. This Court has jurisdiction over the subject matter of this action under

28 U.S.C. § 1331 because this action arises under the FLSA, 29 U.S.C. § 201 et seq.

10. Venue is proper in this District under 28 U.S.C. § 1391(b) because all

or a substantial portion of the events forming the basis of this action occurred in this

District. Defendants’ club is located in this District, and is specifically located in

Fulton County, Georgia, and Plaintiff and the collective action members worked in

and/or are residents of this District.

PARTIES

11. Plaintiff and the other similarly situated entertainers were or are

employed as entertainers by Defendants at the Tattle Tale and each of them were

and are “employees” as defined by the FLSA, 29 U.S.C. § 203(e)(1).

12. Plaintiff has consented in writing to assert claims under the FLSA. As

this case proceeds, it is likely that other individuals will sign consent forms and join

this action as opt-in Plaintiffs.

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13. The collective action members are current or were former entertainers

who are/were employed by Defendants as entertainers at the Tattle Tale from

September 27, 2020 through the present.

14. Tattle Tail, Inc. is a Georgia Corporation with its principal place of

business located at 2075 Piedmont Road NW, Atlanta, Fulton County, Georgia

30342. At all times mentioned herein, Tattle Tail, Inc. was an “employer” of

Plaintiffs and the collective action members within the meaning of the FLSA, 29

U.S.C. § 203(d), (g). Defendant Tattle Tail, Inc. may be served by serving its

registered agent, Denis Kaufman at 2075-B Piedmont Road, Atlanta, Fulton County,

Georgia, 30324.

15. Defendant Denis Kaufman (“Kaufman”) is the Owner of the Tattle Tale

and Owner, CEO, and CFO of Tattle Tail, Inc. He is a resident of Pompano Beach,

Florida. Kaufman acted directly or indirectly on behalf of Tattle Tail, Inc. with

respect to Plaintiff and the collective action members’ compensation and other terms

and conditions of employment and, at all times mentioned herein was an “employer”

or joint employer of Plaintiff and the collective action members within the meaning

of the FLSA. Defendant Kaufman may be served at 3270 Lakeview Drive, Pompano

Beach, Florida 33062 or wherever he may be found.

16. Defendant Richard Schronce is the General Manager of the Tattle Tale

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and, upon information and belief, a resident of Dekalb County, Georgia. Schronce

acted directly or indirectly on behalf of Tattle Tail, Inc. with respect to Plaintiff and

the collective action members’ compensation and other terms and conditions of

employment and, at all times mentioned herein was an “employer” or joint employer

of Plaintiff and the collective action members within the meaning of the FLSA. Upon

information and belief, Defendant Schronce may be served at 1132 Gail Drive, NE,

Brookhaven, Georgia 30319 or wherever he may be found.

17. Plaintiff Janice Christine Owen is a resident of Las Vegas, Nevada and

was employed by Defendants at the Tattle Tale from March of 2015 through June

24, 2023. Owen brings this action individually and on behalf of the collective

action members.

ENTERPRISE COVERAGE

18. At all times material hereto, Tattle Tail. Inc. had an annual gross volume of

sales made or business done of not less than $500,000 (exclusive of excise

taxes at the retail level that are separately stated) within the meaning of 29

U.S.C. § 203(s)(1)(A).

19. At all times material hereto, two or more employees of Tattle Tail, Inc. used

or handled the following items (among others) that moved in interstate

commerce that are necessary for performing its commercial purpose: cash,

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credit card machines, food, liquor, spirits, computers, office furniture, office

technology, beer, and glassware.

20. At all times material hereto, Tattle Tail, Inc. had two or more "employees

handling, selling or otherwise working on goods or materials that have been

moved in or produced for commerce by any person" within the meaning of 29

U.S.C. § 203(s)(1)(A), including multiple employees regularly selling

alcoholic beverages produced and shipped from outside Georgia.

21. At all times material hereto, Tattle Tail, Inc. was an "enterprise engaged in

commerce or in the production of goods for commerce" within the meaning

of FLSA § 6(a), 29 U.S.C. § 206 (a).

22. At all times material hereto, Tattle Tail, Inc. had an annual gross volume of

sales made or business done of not less than $500,000.00 (exclusive of excise

taxes at the retail level that are separately stated) within the meaning of 29

U.S.C. § 203(s)(1)(A).

EMPLOYMENT RELATIONSHIP

23. At all times relevant hereto, Tattle Tale, Inc. and Kaufman owned and

operated a night club under the trade name "Tattle Tale" located at 2075

Piedmont Rd. NW Atlanta, Georgia

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24. At all times relevant hereto, the Tattle Tale featured entertainment in the form

of nude or semi-nude female dancing.

25. As an exotic dancer at the Tattle Tale, Plaintiff Owen and the collective she

represents was/were responsible for entertaining patrons by performing nude

or semi-nude dances.

26. At all times relevant hereto, Defendants shared control of their employees,

including Plaintiff and the collective.

27. At all times relevant hereto, Plaintiff and the collective have been under the

direct or indirect control of all Defendants with respect to their duties at the

Tattle Tale.

28. At all times relevant hereto, Defendants have exercised joint control over

Plaintiff and the collective she represents, including significant decisions

affecting the employment and compensation of Plaintiff and the collective

action members, including the decisions to not pay Plaintiff and the

collective minimum wage as required by the FLSA and seize their tips in

violation of the TIP and the FLSA.

29. At all times relevant hereto, Defendants acted directly or indirectly in the

interest of each other with respect to Plaintiff and the collective.

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30. At all times relevant hereto, Tattle Tale, Inc., was an "employer" of Plaintiff

Owen and the collective within the meaning of FLSA § 3(d), 29 U.S.C. §

203(d).

31. At all times relevant hereto, Plaintiff Owen and the collective was/were an

"employee" of Tattle Tale, Inc. within the meaning of FLSA § 3(e)(1), 29

U.S.C. § 203(e)(1).

32. At all times relevant hereto, Kaufman was an "employer" of Plaintiff Owen

and the collective within the meaning of FLSA § 3(d), 29 U.S.C. § 203(d).

33. At all times relevant hereto, Plaintiff Owen and the collective was/were an

"employee[s]" of Kaufman within the meaning of FLSA § 3(e)(1), 29 U.S.C.

§ 203(e)(1).

34. At all times relevant hereto, Schronce was an "employer" of Plaintiff Owen

and the collective within the meaning of FLSA § 3(d), 29 U.S.C. § 203(d).

35. At all times relevant hereto, Plaintiff Owen and the collective was/were an

"employee" (or employees) of Schronce within the meaning of FLSA §

3(e)(1), 29 U.S.C. § 203(e)(1).

36. At all times relevant hereto, Mr. Kaufman was a corporate officer of Tattle

Tale, Inc..

37. At all times relevant hereto, Mr. Kaufman was the owner of Tattle Tale, Inc.

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38. At all times relevant hereto, Kaufman was involved in the day-to-day

operations of the Tattle Tale and Tattle Tale, Inc.

39. At all times relevant hereto, Mr. Schronce was involved in the day-to-day

operations of the Tattle Tale and Tattle Tale, Inc.

40. At all times relevant hereto, Schronce had the power to hire and fire dancers

at the Tattle Tale.

41. At all times relevant hereto, Kaufman held himself out publicly as the owner

of the Tattle Tale.

42. At all times relevant hereto, Schronce held himself out as the general manager

of Tattle Tale.

43. At all times relevant hereto, Kaufman exercised managerial authority with

respect to Plaintiff and the members of the collective.

44. At all times relevant hereto, Schronce exercised managerial authority with

respect to Plaintiffs and the members of the collective.

45. At all times relevant hereto, Mr. Kaufman scheduled Plaintiffs' working hours

or supervised the scheduling of Plaintiffs' working hours.

46. At all times relevant hereto, Schronce scheduled Plaintiffs' working hours or

supervised the scheduling of Plaintiffs' working hours.

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47. At all times relevant hereto, Kaufman exercised managerial authority over the

work rules at Tattle Tale.

48. At all times relevant hereto, Schronce exercised managerial authority over the

work rules at Tattle Tale.

49. At all times relevant hereto, Kaufman exercised managerial authority over

Plaintiffs' compensation.

50. At all times relevant hereto, Schronce exercised managerial authority over

Plaintiffs' compensation.

ADDITIONAL FACTUAL ALLEGATIONS

51. Plaintiff and the collective were employed by Defendants as

entertainers during the past three (3) years.

52. At all times relevant to this Complaint, Plaintiff and the collective were

treated as W-2 “employees” of the Tattle Tale, Inc.

53. Upon information and belief, until approximately early 2021, the Tattle

Tale paid entertainers a “tipped wage” of $2.13 per hour but did not use a tip credit

to make up the difference between the hourly wage and the minimum wage under

the tip credit provisions of the FLSA. Defendants never formed or utilized a proper

tip pool. Upon information and belief, sometime in 2021, Tattle Tale began paying

Plaintiff and similarly situated entertainers $7.25 per hour for

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some of the hours on the job. The Defendants did not accurately keep or record all

hours worked by Plaintiff and the collective, and did not pay Plaintiff or the

collective for all hours worked.

54. At all times relevant to this Complaint, Plaintiff worked approximately

four to five night shifts per week.

55. Plaintiff and the collective action members who worked nights began

each night shift by approximately 9:00pm and remained at work until checkout was

completed at or after approximately 3:30 am.

56. When Plaintiff and the collective arrived at work, her/their arrival time

was allegedly noted by the House Mom on duty. However, Defendants did not pay

the entertainers, including the collective action members, for all time spent on the

job.

57. After the club closed at 3:00 am on each night shift, Defendants

required Plaintiff and the collective dancers to go through a check-out process at the

end of each shift, during which the entertainer is required to make certain payments

club management, house mom, and the DJ.

58. Defendants knew that entertainers, including the Collective Action

Plaintiffs and collective action members, were not being compensated for the time

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incurred on the job during the club’s business hours or after the club closed each

night.

59. At all times relevant to this action, Defendants required each

entertainer, including Plaintiff and the collective, to pay a ten percent fee (10%) to

convert customer tips paid by credit card into cash.

60. The 10 percent (10%) fee was retained by the Defendants.

61. In each week Plaintiff or any collective member paid the required ten

percent (10%) “credit card to cash conversion fee,” the entertainer’s wages were

dropped below the minimum wage.

62. To the extent Defendants were attempting to maintain a “tip pool” and

pay 2.13 per hour, the tip pool was invalid. Tattle Tale is not entitled to a tip credit

for the difference between the hourly wage of $2.13 and the minimum wage of $7.25

per hour.

63. At all times relevant to this complaint, entertainers were required to pay

a $60.00 house fee for each shift worked; at the end of each shift, entertainers were

required to pay the “house mom” $16.00 per shift.

64. Payments of the “house fee” and the “house mom fee” each shift were,

and are, unlawful deductions under the FLSA.

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65. For each workweek in which a House Fee or House Mom Fee was paid

by an entertainer, the entertainer’s wages dropped below the minimum wage.

66. At all times relevant to this complaint, entertainers were required to pay

ten percent (10%) of their gross tips to the club DJ at the end of each shift.

67. Payments of the DJ fee each shift were, and are, unlawful deductions

under the FLSA.

68. For each workweek in which the club DJ was paid 10% of an

entertainers tips, the entertainer’s wages dropped below the minimum wage.

69. The house fee, house mom fee, DJ fee, “credit card to cash conversion

fee”, and failure to fully compensate each entertainer for all hours worked caused

Plaintiff and the collective action members’ wages to drop below the minimum

wage; the various fees charged Plaintiff and the collective members violate the free

and clear requirement of the FLSA and constitute an illegal kick back under the

FLSA.

70. The amounts paid to Tattle Tale entertainers by its customers are not

included in Tattle Tale, Inc.’s gross receipts or accounting records, are not taken into

possession by Defendants and distributed to Tattle entertainers, and Plaintiff and the

collective were required to pay Defendants and others to work at the Tattle Tale.

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71. At all times relevant to this Complaint, Plaintiff and the collective were

not exempt from the maximum hour requirements of the FLSA by reason of any

FLSA exemption.

72. At all times relevant to this Complaint, Defendants did not employ

Plaintiff or any member of the collective in a bona fide professional capacity within

the meaning of 29 USC 213 (a)(1).

73. At all times material hereto, Defendants did not employ Plaintiffs or

any member of the collective in a bona fide executive capacity within the meaning

of 29 U.S.C. 213 (a)(1).

74. At all times material hereto, Defendants did not employ Plaintiff or any

member of the collective in a bona fide administrative capacity within the meaning

of 29 U.S.C. 213(a)(1).

75. At all times material hereto, Plaintiff and/or the collective action

members did not supervise two or more employees.

76. At all times material hereto, Defendants did not employ Plaintiff or any

member of the collective in the capacity of an “outside salesman” so as to be exempt

from the minimum and maximum hour requirements of 29 USC 213(a)(1).

77. Upon information and belief, either Defendants failed to maintain, or

Defendants maintained inaccurate records of, house fees, house mom fees, credit

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card conversion fees, DJ fees, time sheets, and records reflecting actual hours

worked at the Tattle Tale as to each entertainer, including Plaintiff and the collective.

78. Defendants maintain, and maintained incomplete records of time

worked by Plaintiff and the collective.

79. Defendants willfully disregard and purposefully evade record keeping

requirements of the FLSA by failing to maintain proper and complete timesheets and

payroll records for entertainers. Defendants’ failure to maintain records of the time

worked and amounts paid as fines, tips, gratuities and service charges violate the

record keeping requirements of 29 CFR Part 516

80. Defendants knew, or showed reckless disregard for the fact that their

compensation policies violated the FLSA.

COLLECTIVE ACTION ALLEGATIONS – 29 U.S.C. § 216(b)

81. Defendants maintained a policy and practice of not compensating

entertainers for the time they spent at work.

82. Defendants maintained a policy and practice of not compensating

entertainers for all time spent at the Tattle Tale, including (but not limited to) time

spent working during the hours the club was open and during the check-out process

at the end of each shift.

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83. Defendants maintained a policy and practice of requiring entertainers

to pay house fees, house mom fees, DJ Fees, and credit card/cash conversion

charges.

84. Prior to early 2021, Defendants only paid entertainers $2.13 per hour,

and thus maintained a policy and practice of requiring entertainers to participate in

an unlawful (or nonexistent) tip pool.

85.. Like Plaintiff, there are members of the putative Collective action who

are or were subject to the same FLSA violations. These individuals would benefit

from the issuance of court-supervised notice of this lawsuit and the opportunity to

join by filing their written consent. Defendants can readily identify these similarly

situated entertainers through their business records and produce their contact

information to Plaintiffs’ counsel.

86. The putative class includes:

All entertainers who were employed by Defendants at any time during

the three years prior to the date of filing of this lawsuit.

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COUNT I
MINIMUM WAGE CLAIM (Claims for Violation of 29 U.S.C. § 206)

87. The allegations of paragraphs 1 – 86 above are incorporated herein by

reference.

88. Each Defendant is an “employer” or joint employer of Plaintiffs and all

others similarly situated within the meaning of the FLSA, 29 U.S.C. § 203(d).

89. Defendants are engaged in “commerce” and/or in the production of

“goods” for “commerce” as those terms are defined in the FLSA.

90. Tattle Tail, Inc. operates an enterprise engaged in commerce within the

meaning of the FLSA, 29 U.S.C. § 203(s)(1), because it has employees engaged in

commerce, and because its annual gross volume of sales made is more than

$500,000.

91. At all times material hereto, Plaintiff and the collective action members

were or are employees covered by the FLSA and entitled to the minimum wage

protections set forth in FLSA, 29 U.S.C. § 206; Plaintiff consents to sue in this action

pursuant to 29 U.S.C. § 216(b) and the consent to sue executed by Plaintiff is

attached to Complaint.

92. Defendants willfully disregarded and purposefully evaded record

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keeping requirements and failed to maintain proper, complete, and accurate

timesheets and work records of Plaintiff and the collective; as a result of Defendants’

failure to make, keep and maintain records under the FLSA, such records do not

exist or insufficient to determine wages, hours, forced tip-outs, fees, fines, and other

conditions of employment.

93. Defendants failed to pay Plaintiff and all others similarly situated the

minimum wage for all hours worked in violation of 29 U.S.C. § 206.

94. At all times material hereto, Defendants required Plaintiff to pay

kickbacks to Defendants and their managers, as described herein.

95. Defendants' requirement that fees (including, but not limited to, house

fees of $60 per shift, house mom fees each shift, DJ fee of 10% each shift, and credit

card/cash conversion fees of 10% each shift) be paid by Plaintiff and collective

action members to Defendants and their agents and employees violated the "free and

clear" requirement of 29 CFR 531.35.

96. Plaintiff and the collective are entitled to payment of minimum wages

for all hours worked in an amount to be determined at a trial by jury, in accordance

with FLSA § 16(b), 29 U.S.C. § 216(b).

97. Plaintiff and the collective are entitled to reimbursement of all

kickbacks paid to Defendants and their agents and employees, in addition to all other

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unpaid wages.

98. Plaintiff and the collective are entitled to liquidated damages in an

amount equal to their unpaid wages and kickbacks paid in accordance with FLSA §

16(b), 29 U.S.C. § 216(b).

99. As a result of their underpayment of minimum wages as alleged herein,

Defendants are jointly and severally liable to Plaintiff and the collective action

members for their litigation costs, including their reasonable attorney's fees in

accordance with FLSA § 16(b); 29 U.S.C. § 216(b).

100. Based upon the conduct alleged herein, Defendants knowingly,

intentionally and willfully violated the FLSA by not paying Plaintiffs and the

collective action members the minimum wage under the FLSA.

101. Throughout the relevant period of this lawsuit, there is no evidence that

Defendants’ conduct that gave rise to this action was in good faith and based on

reasonable grounds. In fact, at all times relevant to this action, Defendants willfully

violated the FLSA knowing that their wage scheme, compensation policies, and

required kickbacks were illegal.

102. Due to Defendants’ FLSA violations, Plaintiff and the collective action

members are entitled to recover from Defendants, minimum wage compensation

and an equal amount in the form of liquidated damages, as well as reasonable

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attorneys’ fees and costs of the action, including interest, pursuant to 29 U.S.C. §

216(b).

COUNT II
UNLAWFUL TAKING OF TIPS (Violation of 29 U.S.C. § 203)

103. The allegations of paragraphs 1 – 102 above are incorporated by

reference.

104. Each Defendant is an “employer” or joint employer of Plaintiff and

each collective action member within the meaning of the FLSA, 29 U.S.C. § 203(d).

106. Defendants engaged in “commerce” and/or in the production of

“goods” for “commerce” as those terms are defined in the FLSA.

107. Defendants operate an enterprise engaged in commerce within the

meaning of the FLSA because they have employees engaged in commerce and

because its annual gross revenue of sales made is more than $500,000.00.

108. Under TIPA:

[a]n employer may not keep tips received by its employees for any purpose
including allowing managers or supervisors to keep any portion of employees
tips, regardless of whether or not it takes a tip credit.

29 U.S.C. § 203.

109. Defendants kept a portion of tips paid to Plaintiff and the collective

action members by Defendants’ customers in the form of fees to the club,

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management, supervisors, house moms, the Club DJ, and others in violation of

TIPA.

110. As a result of Defendants’ willful violation of TIPA, Plaintiff and the

collective are entitled to recover, under the FLSA and TIPA, all tips kept by the

employer, any tip credit claimed by Defendants, an equal amount in liquidated

damages and attorney’s fees.

PRAYER FOR RELIEF

WHEREFORE, Plaintiff, Individually and on behalf of the collective she

represents, respectfully prays that this Court grant relief as follows:

a. Certify this as a collective action and issue notice to collective action

members;

b. As to Count I award Plaintiff and each collective action member who

joins this action judgment for wages at the minimum rate, including the

recovery of all payments reducing wages below the minimum wage, as

well as liquidated damages, interest and attorneys’ fees as provided for

under the FLSA, against the Defendants jointly and severally;

c. That Plaintiff and each collective action member who joins this action

be awarded the “kickbacks” charged by Defendants in violation of the

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FLSA and an additional like amount in liquidated damages, against the

Defendants jointly and severally;

d. As to Count II award Plaintiff and any collective member who joins this

lawsuit judgment for the recovery of all tips kept by the employers, the

amount of any tip credit claimed by Defendants, an equal amount in

liquidated damages and reasonable attorney’s fees under the FLSA and

TIPA against the Defendants jointly and severally;

e. Award Plaintiffs costs of this action, including expert fees;

f. Grant Plaintiffs and the collective action members who join this action

a jury trial on all issues so triable; and

g. Award Plaintiff such other and further relief as the Court may deem just

and proper.

[signature page to follow]

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Respectfully submitted this 27th day of September, 2023.

FLYNN LAW FIRM, LLC

/s/ Jonah A. Flynn

Jonah A. Flynn
Georgia Bar No. 266555
Counsel for Plaintiffs
4200 Northside Parkway NW
Building One, Suite 100
Atlanta, GA 30327
Phone/FAX: 404-835-9660
e-mail: jflynn@flynnfirm.com

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JURY DEMAND

Pursuant to F.R.C.P 38, Demand is hereby made for trial by jury on

all issues raised by these pleadings.

/s/ Jonah A. Flynn

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CERTIFICATE OF COMPLIANCE

The undersigned hereby certifies that the foregoing pleading complies with

the font and point selections approved by the Court in Local Rule 5.1B. This

pleading has been prepared in Times New Roman font, 14 point.

By: /s/ Jonah A. Flynn

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