Denver labor officials exhibited a “reckless abuse of power” that violated the constitutional rights of two city strip clubs during a wide-reaching wage theft investigation that led to nearly $14 million in restitution and fines , the businesses allege in a new federal lawsuit.

Diamond Cabaret and Rick’s Cabaret , in a complaint filed Friday in U.S. District Court for the District of Colorado, allege Denver Labor illegally accessed employee records, falsely accused the clubs of stealing tips from entertainers and employees, and fraudulently misrepresented how much the businesses paid their employees in calculating their fines.

The lawsuit comes a week after Denver Labor, a division of the city auditor’s office, announced the results of a multi-year investigation , in which it accused the two clubs of engaging in widespread wage theft of their entertainers and employees.

The city issued nearly $14 million in fines and restitution payments in a probe the city auditor called an “extraordinary case” unlike any other the office has conducted.

The strip clubs, which share the same ownership, took legal action in order to stop Denver Labor from its enforcement actions and to request a gag order preventing the city from “further dissemination of falsehoods” against the clubs.

“If left unchecked, Denver Labor’s reckless abuse of power and disregard for the limits of statutory authority will set catastrophic precedents that jeopardize every business, worker and entrepreneur in Denver,” the clubs said in their filing.

Michael Brannen, a Denver Labor spokesperson, said the division stands by its findings.

“We will continue to investigate allegations of wage theft and questionable workplace practices at these businesses,” he said in a text message.

The city’s investigation, announced Feb. 26, found Diamond Cabaret and Rick’s Cabaret “violated nearly every applicable provision” of Denver’s minimum wage laws.

These alleged infractions included misclassifying entertainers, failing to pay Denver’s minimum wage and stealing money from entertainers by requiring them to pay for the privilege of working.

The clubs say the city is forcing entertainers to become employees against their will. These women, though, “did not ask for (the city’s) help,” the businesses wrote in the complaint.

“They are self-sufficient women who choose to make a living in the adult nightclub industry, and who negotiated their own legal statuses as licensees with plaintiffs in order to have the benefits and freedoms that come from controlling their own schedules, performing at however many clubs they wish, and maintaining their independence, autonomy and anonymity,” the clubs said in the suit.

Attorneys for the adult venues vehemently pushed back on the allegation that managers stole tips from entertainers and employees.

Rather than taking tips meant for other workers, these managers are directly interacting with clients, handling transactions and proving an option for clients to tip them as VIP hosts, the clubs said. Then they “voluntarily share” a portion of the tips with the rest of the staff.

The lawsuit also accuses the city of committing pervasive errors when calculating penalties against the clubs. Denver Labor’s spreadsheets contained duplicate entries, incorrect pay periods and inconsistent applications of formulas — “further distorting the figures to manufacture an exaggerated claim of wrongdoing,” the businesses alleged.

“This is not an administrative misstep,” the lawsuit said. “It is willful and intentional government misconduct that demands immediate judicial intervention.”

This marks the second lawsuit filed by Denver strip clubs against the city’s labor division.

In October, a month after the city issued its first subpoenas to several businesses, the clubs filed suit , accusing the government of engaging in a “fishing expedition” that threatened the privacy rights of its contracted licensees.

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