Michigan Cannabis Retailer to Pay $205K in Settlement Over Workers’ Lost Tips

LOS ANGELES— Federal Judge Matthew Leitman has approved a $205,000 settlement in a lawsuit filed by employees of Timber Cannabis, a seven-location cannabis dispensary chain in Michigan. The lawsuit alleged that management appropriated tips left by customers in 2024, after budtenders had previously earned up to $150 per shift in gratuities

The lead plaintiff, budtender Chad Underwood, stated in the court filing that the policy change occurred when management began collecting tips placed in baskets or jars. Over 60 current and former employees are expected to receive a portion of the settlement, while approximately one-third of the total has been allocated for legal fees.

Timber Cannabis has maintained its position that it did not violate federal wage laws. The settlement includes no admission of liability and was characterized by Judge Leitman as “fair and appropriate” during the brief hearing.