A Michigan marijuana store will pay $205K to settle a workers’ lawsuit over lost tips

In Michigan, a judge has given the green light to a settlement aimed at resolving a significant issue. Employees at a chain of marijuana dispensaries in Michigan claimed that management was pocketing tips left by satisfied customers. Timber Cannabis, with seven locations, has agreed to pay $205,000 to resolve the lawsuit without admitting any wrongdoing. Lawyers will receive one-third of the settlement amount. The terms of the deal were deemed reasonable and suitable by U.S. District Judge Matthew Leitman. The main plaintiff, Chad Underwood, a budtender, alleged that he used to earn up to $150 in tips per shift before the company started keeping the money left by customers in a basket or jar. Timber Cannabis refuted the allegations of violating federal wage laws in its formal response to the lawsuit. According to attorney Angeli Murthy, who represents over 60 employees, they will be eligible for the settlement. Michigan legalized the recreational use of marijuana in 2018 for individuals aged 21 and above.