Rachel B. Lerner
Friday, January 24, 2025
On October 11, 2024, a budtender represented by MSE and employed at a cannabis dispensary owned and operated by Herbology and Royal Highness LLC filed a case against his employers. The lawsuit asserts that he and other budtenders were required to participate in an illegal tip pool. Specifically, he alleges that there is a mandatory tip pool that includes supervisors and managers in violation of the Fair Labor Standards Act and Michigan common law. As a result of the tip pool, the employers unlawfully retained tips owed to the budtenders.
On December 12, 2024, the Defendants filed a Motion to Dismiss. The motion argued that one of the Plaintiffs signed an Employment Agreement that barred the case from proceeding in court because of a binding arbitration clause. Plaintiffs oppose dismissal arguing that not only are the claims in this case not covered by the Agreement, but that the agreement is not enforceable because it is not binding on the employer, and contains an improper fee shifting clause. The motion is currently pending before the Eastern District of Michigan.
MSE attorneys have experience representing tipped employees, including cannabis industry employees. If you are a budtender at a Herbology dispensary and would like more information about participating in the case, please reach out to MSE as soon as possible through our website or by emailing us at info@mselaborlaw.com
If you are an employee who 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 under the law, please contact MSE today to learn more about your rights.
