Beginning in May 2006, plaintiff Quinece Hills, 29, a dancer at Paradise Showgirls in the city of Industry, noticed that club owner Todd & Katie Inc. was taking a portion the tips earned by her and other dancers. She alleged that Todd & Katie Inc. illegally took a portion of the dancers’ tips to apportion amongst managers and other workers. Hills, acting individually and as the lead representative of a class 249 dancers, sued the operator of Paradise Showgirls, Todd & Katie Inc. Hills alleged that the defendant’s actions constituted violations of the California Labor Code. The class initially brought claims of misclassification of the dancers as independent contractors; failure to pay wages and provide breaks, as they were not paid minimum and overtime wages and were not provided rest and meal breaks; and failure to provide reimbursements, as they were not reimbursed for uniforms they were required to purchase. However, these claims were not heard and the case only continued to trial on the claim of wrongful misappropriation of a portion of the dancers’ tips. Counsel for the class of dancers contended that California law prohibits clubs from taking any portion of money that dancers received from patrons for private performances, including any dance fees and tips. Defense counsel contended that the dancers were renting space at the club to perform their services and that any tip policies from the company and club were a way for the dancers to contribute to the club’s overhead charges., The class sought recovery for the amount taken from the tips they earned.