Michigan Marijuana Dispensary Settles Lawsuit Over Lost Tips
A Michigan-based cannabis company, Timber Cannabis, has agreed to pay $205,000 to settle a lawsuit filed by its employees. The lawsuit claimed that the company was keeping tips left by customers, which was a violation of federal wage law.
The lawsuit was filed by a lead plaintiff, Chad Underwood, a budtender who claimed that he was making up to $150 per shift in tips before the company changed its policy in 2024. Under the new policy, the company began taking money left in a basket or jar, which the employees claimed was their rightful property.
The company denied any wrongdoing, but agreed to the settlement to avoid further litigation. The settlement will benefit over 60 employees who will receive a share of the payout. The employees’ lawyers will receive one-third of the settlement amount.
The settlement was approved by a US District Judge, who deemed it “fair and appropriate.” The recreational use of marijuana was legalized in Michigan in 2018 for individuals aged 21 and older.
This settlement serves as a reminder that employees have the right to their hard-earned tips, and employers must respect this right.
