On July 22, 2024, a federal judge in New Mexico approved a class action settlement for 249 budtenders employed by Medicine Man Technologies Inc. (doing business as Schwazze) in New Mexico and Colorado. The budtenders are represented by Molly Elkin, Sarah Block, and Rachel Lerner of McGillivary Steele Elkin LLP and New Mexico attorneys from the law firm of Youtz & Valdez, P.C.
The settlement provides budtenders with a total of $525,000.00 to resolve their claims alleging that Schwazze unlawfully required them to participate in a tip pool with supervisory employees in violation of the Fair Labor Standards Act and New Mexico state law and that, as a result, Schwazze unlawfully retained tips owed to the budtenders. The parties reached a settlement even though defendants vigorously asserted that the tip pool was proper because supervisors spent a substantial portion of their shifts, side by side with the budtenders, waiting on customers. The court found that the settlement is fair, reasonable, and adequate. The average payout for the budtenders, after all fees and expenses, is $1,300.00 (equaling roughly two-weeks’ wages), and up to $3,700.00.
MSE attorneys have significant experience representing tipped employees, including cannabis industry employees, in recovering unpaid or underpaid minimum wages and overtime and in enforcing their workplace rights. For example, MSE also represents budtenders who work for High Horse dispensaries who allege that the company stole their tips. The High Horse case was filed in June 2024 and is still in the early stages of litigation. If you are a High Horse budtender and would like more information about participating in the case, reach out to MSE as soon as possible by emailing us at info@mselaborlaw.com.
If you are an employee that receives tips and are required to share any portion of your tips with supervisors or managers (even if you earn at least the minimum wage in your state), or if you believe that you have not been paid the wages to which you are entitled to under the law, please contact MSE today to learn more about your rights.
