I played it for a bit and, yes, they will be prostituting themselves to the customers. I stopped playing it after a while, as the premise of the relationships is just so bizarre. You're their boss, but are worried about them being too forward... yeah right, a prostitute being too forward. As far as I got, he wants nothing to do with sampling their wares.
And turn down your volume, as the music is pretty loud until you start the game and can get to the preferences page.
That, and setting the text speed to full and still getting a teletype scroll just drives me nuts.