THREE RIVERS, Mich. — In a recent legal resolution, a Michigan marijuana dispensary chain has reached an agreement to address an issue concerning employee tips. Workers at Timber Cannabis, which operates in seven different locations, accused the company’s management of pocketing tips that were meant for the staff, sparking significant concern among the employees.
To resolve this, Timber Cannabis agreed to a settlement of $205,000, although they have not acknowledged any wrongdoing by entering into the settlement agreement. A notable portion, one-third, will be allocated to cover legal fees. During a brief court session, U.S. District Judge Matthew Leitman expressed that the terms of the settlement were “fair and appropriate.”
Chad Underwood, the lead plaintiff and a budtender, revealed in the lawsuit that he was earning up to $150 through tips in each shift prior to a policy shift by management in 2024, which involved taking the tips that were left in containers by the customers. The company, however, officially denied any breach of federal wage laws in their response to the lawsuit.
According to attorney Angeli Murthy, who represents the affected employees, more than 60 staff members are eligible to receive compensation from the settlement. The legalization of recreational marijuana for individuals aged 21 and older in Michigan took place in 2018, leading to a booming cannabis industry in which fair wage practices remain a critical focus.