Sarah M. Block
Thurs., October 10, 2024
On October 3, 2024, Christian Segura, a former employee of California cannabis company Stiizy Inc., filed suit to recover minimum wages and overtime owed as a result of the company’s policy of paying employees per cannabis plant cared for, rather than per hour worked. Segura was paid $2.50 per plant, and usually earned about $70 per day for caring for approximately 28 plants; however, the current minimum wage in California is $16 per hour, and Segura and other employees regularly worked 10-12 hours per day without proper breaks. The company also threatened employees with $100 paycheck deductions if they arrived late or failed to show report to work, and failed to provide workers with accurate wage statements. Segura filed his lawsuit as a representative action on behalf of all other aggrieved employees under a unique California law permitting this type of action. The lawsuit is called Segura v. Stiizy, Inc., Case No. 24STCV35660, and was filed in the Superior Court for Los Angeles County – Central District.
Wage and Hour Violations are Common in the Cannabis Industry
Wage and hour violations are rampant in the cannabis industry, particularly as more states legalize recreational sale and use of cannabis. In addition to employers’ failure to pay minimum wages and overtime compensation, many cannabis companies improperly retain tips or require improper pooling of tips. Despite the complicated nature of their business operations, cannabis companies are not exempt from complying with the Fair Labor Standards Act or state wage and hour laws.
MSE has Successfully Represented Budtenders and Other Cannabis Workers
MSE has successfully represented budtenders and other cannabis employees in suits seeking to recover improperly pooled and withheld tips and other wrongfully unpaid wages. For example, MSE recovered $525,000 on behalf of budtenders employed by Medicine Man Technologies (d/b/a Schwazze) in New Mexico and Colorado as a result of their claims that Schwazze unlawfully required budtenders to participate in a tip pool with supervisors.
MSE is currently representing budtenders employed by High Horse dispensaries in New Mexico who allege that the company stole their tips. This case is still in the early stages of litigation, so if you are a High Horse budtender and would like more information about participating in the case, please reach out to MSE as soon as possible at info@mselaborlaw.com.
If you are a cannabis industry worker and you believe that you have not been paid the minimum wages or overtime owed under the law, or you believe that your employer has improperly retained your tips or required you to share them with a supervisor or manager (even if you earn at least the minimum wage in your state), please contact MSE today through our website to learn more about your rights.
If you think you are experiencing an issue similar to the one involved in this lawsuit, please reach out to us for a free consultation. We can help you understand your rights and options.
