News Summary

A U.S. District Judge in Three Rivers, Michigan, has approved a $205,000 settlement to compensate 60 employees of Timber Cannabis for allegations of tip misappropriation. The settlement allocates one-third to attorneys while Timber Cannabis did not admit wrongdoing. The case highlights broader issues of worker rights in the evolving cannabis industry, raising concerns about compliance with federal wage laws. Settlement funds are expected to provide financial relief to the affected workers.

Three Rivers, Michigan – Judge Approves $205,000 Settlement for Dispensary Employees

A U.S. District Judge in Three Rivers, Michigan, has approved a $205,000 settlement for employees of Timber Cannabis, a marijuana dispensary chain, following allegations of tip misappropriation. The settlement, which was finalized during a hearing, allows around 60 employees who participated in the lawsuit to receive compensation. However, Timber Cannabis, which operates seven locations, did not admit any wrongdoing as part of the agreement.

The settlement allocates one-third of the total amount—approximately $68,333—to the attorneys representing the employees. The lead plaintiff, Chad Underwood, a budtender at the dispensary, reported that he previously earned tips of up to $150 per shift. This changed in 2024 when the management began to retain tips that were left in a communal basket or jar, prompting legal action.

Judge Matthew Leitman described the terms of the settlement as “fair and appropriate,” emphasizing the importance of resolving the issue for the affected employees. The case raises concerns about compliance with federal wage laws, which Timber Cannabis has consistently denied violating in response to the allegations.

Angeli Murthy, the attorney representing the employees, has stated that the settlement will benefit those who worked at Timber Cannabis during the time when management allegedly misappropriated tips. The agreement marks a significant step in ensuring that workers receive fair compensation for their services as the legal landscape surrounding the cannabis industry continues to evolve.

The legalization of recreational marijuana in Michigan in 2018 has created a burgeoning industry, attracting many new businesses and employees. While this growth offers economic benefits, it also brings challenges related to labor rights and compliance with existing wage laws. The case against Timber Cannabis is reflective of broader issues within the new cannabis market as it navigates regulations designed to protect workers.

As the cannabis industry matures, similar disputes are likely to arise, highlighting the need for clear legal frameworks to ensure that employees are fairly treated. The Timber Cannabis case serves as an important reminder of the workers’ rights against unfair employment practices and the scrutiny that cannabis businesses must face in their operations.

Settlement funds will be distributed to the eligible employees soon, providing much-needed financial relief after the allegations. Meanwhile, Timber Cannabis continues to operate its dispensaries, emphasizing its commitment to compliance and operational excellence despite the ongoing legal scrutiny.

As the cannabis industry remains a focal point of discussion, it is imperative for businesses to ensure transparent practices that uphold both employee rights and customer trust. The outcome of this settlement may influence future legal actions and policies, determining how similar allegations will be addressed moving forward.

Through this settlement and the attention surrounding it, observers will be monitoring how Timber Cannabis and similar businesses handle employee relations and compliance with federal wage laws in the evolving context of the cannabis industry.