Thu, 08/03/2023
On August 1, 2023, MSE, along with New Mexico law firm Youtz & Valdez PC, filed a lawsuit on behalf of Justin Fowler and other similarly situated individuals who work as budtenders at dispensaries owned and operated by Medicine Man Technologies, Inc. d/b/a/ Schwazze (“Schwazze”), including locations operating under the R.Greenleaf brand name. Specifically, the lawsuit alleges that Schwazze required budtenders to participate in an unlawful tip pool that included supervisors and that Schwazze unlawfully retained tips earned by budtenders and, among other things, used them to buy lunches for all staff. The suit alleges violations of the Fair Labor Standards Act (FLSA) as well as violations of the New Mexico Minimum Wage Act and state common law.
The lawsuit is styled Fowler v. Medicine Man Technologies, Inc. d/b/a Schwazze, No. 1:23-cv-00640-KK-SCY, and is currently pending in the U.S. District Court for the District of New Mexico. The MSE attorneys representing the budtenders are Molly Elkin, Sarah Block, and Rachel Lerner.
Significantly, it is unlawful for an employer to retain an employee’s tips, even if the employer does not take a tip credit and the worker is paid at a rate higher than the tipped minimum wage. As a result, mandatory tip pools which include supervisors or managers are illegal. Similarly, for employees working at the lower, tipped wage rate, it is unlawful for employers to require tips to be pooled and shared with workers who do not regularly and customarily receive tips.
If you have worked for Schwazze as a budtender and were required to participate in a mandatory tip pool that included supervisors or managers, contact MSE at info@mselaborlaw.com with the subject line “Budtender Tip Lawsuit” to learn more about how you can participate in the case.
Additionally, if you are a tipped worker in any industry who has been required to unlawfully share tips with supervisors or managers, or has suffered from other tip-related wage violations, reach out to MSE today for a free consultation with an experienced attorney about your rights to tips, minimum wages and overtime compensation.
