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April 5, 2024

Federal Court Preliminary Approves Class Action Settlement in Tip Pool Lawsuit Brought by Schwazze Budtenders in New Mexico and Colorado

On April 1, 2024, a federal district court in New Mexico preliminary approved a class action settlement on behalf of approximately 250 budtenders employed by Medicine Man Technologies Inc. (doing business as Schwazze) in New Mexico and Colorado. The settlement provides the budtenders in the Settlement Class with a total of $525,000 to resolve their claims that the cannabis company unlawfully required them to share tips with supervisory employees called Shift Leads in violation of the Fair Labor Standards Act (FLSA) and New Mexico law.

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