ET explores the controversy surrounding David Hernandez.

"American Idol" contestant DAVID HERNANDEZ has found himself in the headlines -- not for his singing, but for his stripper past.

David belted out the JIM STEINMAN power ballad "It's All Coming Back to Me Now" last night, just hours after the story broke that he used to dance at Dick's Cabaret, a gay strip club in Phoenix, AZ.

Co-owner PAUL MORRIS tells us that David worked there for about three years, up until last September. He says he first met David when "we hired him off an amateur night, and he just walked in and it was a no-brainer to hire him."

Paul told us David definitely had what it took to work there.

"Stage presence, ability to dance, and you have to actually enjoy what you're doing to some extent."

He says that the club employs gay and straight dancers.

"I run a male strip club, so my opinion is I don't want to know," he says.

Meanwhile, general manager GORDY BRYAN says his former employee made a good living working for the club. "He did well here, yeah, I would say that."

According to Gordy, dancers at the club can make quite a bit of money, although that "depends really on the crowd, and if you have what the crowd's looking for. You can make ... up to 400 dollars an hour."

As for the reports that the 'Idol' hopeful performed fully nude lap dances, Gordy told us he wasn't always there, adding, "Some do that, some don't, it depends on the dancer."

Producers of "American Idol" say that David won't be disqualified.

At last night's taping of the girls' performances, which will air tonight on FOX, ET talked to members of the audience and he has strong support from fans -- who feel he should stay despite the controversy because he has a good singing voice.