Marijuana Store Paying $205K to Settle Workers’ Lawsuit Over Tips

A judge approved a deal to try to solve a major buzzkill: Employees at a Michigan marijuana dispensary chain said management was keeping tips left by happy customers.

Timber Cannabis, which has seven locations, agreed to pay $205,000 to settle a lawsuit, though it admitted no liability in making the deal. Lawyers are entitled to one-third.

Terms of the agreement seem “fair and appropriate,” U.S. District Judge Matthew Leitman said during a brief hearing.

The lead plaintiff, budtender Chad Underwood, said he was making as much as $150 per shift in tips before management changed course in 2024 and began taking money left in a basket or jar, according to the lawsuit.

Timber Cannabis denied violating federal wage law in its formal response to the lawsuit. More than 60 employees will qualify for the settlement, said attorney Angeli Murthy, who represents them.

Recreational use of marijuana was made legal in Michigan in 2018 for people age 21 and older.