EarthMed Budtenders Reach $250,000 Tip Theft Lawsuit Settlement, Here’s If You Qualify and What to Do Next

Chicago-area budtenders filed a proposed class action accusing EarthMed LLC of unlawfully taking tips meant for them and giving the money to managers and supervisors. The two sides reached a $250,000 settlement, and budtenders are now asking a federal judge to approve the deal. If you worked as a budtender at an EarthMed dispensary in the Chicago area, you may be entitled to a share of the settlement fund — but you likely need to act before a court-imposed deadline.

Quick Facts

Field	Detail
Settlement Amount	$250,000
Defendant	EarthMed LLC and related entities
Who Qualifies	Current and former EarthMed budtenders — Illinois locations
Alleged Violation	Illegal tip pooling — tips diverted to managers and supervisors
Laws Cited	Fair Labor Standards Act (FLSA); Illinois Wage Payment and Collection Act
Case Name	Peters v. Earthmed LLC et al, No. 1:24-cv-11255
Court	U.S. District Court, Northern District of Illinois
Case Filed	October 31, 2024
Settlement Status	Proposed — awaiting federal court approval
Claim Deadline	TBD — check court docket after final approval
Settlement Administrator	TBD
Official Claim Website	TBD

Where the Settlement Stands Right Now

• Budtenders filed their motion asking a federal judge to approve the $250,000 settlement on March 24, 2026 — meaning final approval and the claim filing period have not yet opened.
• Once a judge grants final approval, a claims administrator will notify class members and open a formal filing window. TBD on exact dates.
• EarthMed has not admitted wrongdoing as part of the settlement — a standard condition in class action resolutions of this type.

What EarthMed Allegedly Did With Its Workers’ Tips

A Chicago-based dispensary chain, EarthMed LLC, was hit with a proposed class action accusing it of allowing management to steal large portions of tips meant for budtenders. The lawsuit, filed in October 2024, says EarthMed ran a tip pool that siphoned money away from the customer-facing employees who earned it.

Under federal law, tips belong to the workers who receive them. The Fair Labor Standards Act prohibits employers from keeping any portion of employee tips or including managers and supervisors in tip pools — regardless of whether the employer pays the full minimum wage. The budtenders alleged that EarthMed violated state and federal labor law by pooling tips and distributing them to managers as well as budtenders.

EarthMed operates cannabis dispensaries in the Chicago area, including locations in Addison, Rosemont, and McHenry, Illinois. EarthMed describes itself as committed to providing customers the best recreational and medical marijuana products at its Illinois dispensaries. None of that, however, addressed what happened to customer tips on the employee side — which is exactly what this lawsuit challenged.

Tip Theft Is a Growing Problem Across the Cannabis Industry

This case is not an isolated incident. The cannabis industry has seen a wave of nearly identical lawsuits in recent years, and courts have consistently sided with workers.

Timber Cannabis, which operates seven locations in Michigan, agreed to pay $205,000 to settle a tip theft lawsuit after a lead plaintiff said he was making as much as $150 per shift in tips before management changed course and began taking money left in a tip basket or jar.

Schwazze settled a class action brought by New Mexico and Colorado budtenders for $525,000, after the lawsuit accused the company of unevenly splitting tips and using some tip money to buy meals for staff.

Three budtenders who worked for Nirvana Cannabis in Arizona, Michigan, and Illinois filed a separate federal class action in January 2026 alleging the company systematically withholds tips from budtenders by distributing them to supervisors and managers, and uses tip money to cover business expenses in violation of the Fair Labor Standards Act. That case remains in active litigation.

The pattern is clear: cannabis dispensary management pocketing employee tips is a documented, industrywide practice — and workers who file claims are winning.

Related article: Cigna LocalPlus $5.7M Ghost Network Settlement Gets Final Approval, But the Claim Deadline Has Passed

Who Qualifies for the EarthMed Settlement

You may qualify if:

• You worked as a budtender or similar hourly, customer-facing role at any EarthMed LLC dispensary in Illinois
• You worked there at any point during the period covered by the class definition (TBD — exact dates to be confirmed in court approval order)
• You received tips from customers that were then pooled and redistributed to managers or supervisors
• You did not previously opt out of this lawsuit or release your claims against EarthMed separately

The class definition and exact employment date range will be confirmed in the court’s final approval order. Workers who received a formal class notice are almost certainly included.

How Much Can Each Worker Receive?

Individual payout amounts are TBD. The $250,000 gross settlement fund will be reduced by:

• Attorney’s fees (typically 33% in FLSA class actions — approximately $82,500)
• Settlement administration costs (TBD)
• Any service award to the named plaintiff (TBD)

The remaining net fund gets distributed among all qualifying class members, likely weighted by how long each person worked and how many tip-eligible shifts they worked during the class period. Exact per-person amounts will be disclosed in the settlement notice each class member receives.

What EarthMed Budtenders Need to Do Right Now

Step 1 — Watch your mail and email Once the judge grants final approval, the settlement administrator will mail or email a formal notice to all known class members. That notice will include your claim form, your unique ID number, and your deadline. Do not ignore it.

Step 2 — Update your contact information If you no longer live at the address EarthMed had on file when you worked there, contact the claims administrator as soon as one is appointed. An outdated address means a missed notice and a missed payment.

Step 3 — Check the court docket You can monitor the case yourself for free at the PACER federal court system (pacer.gov). Search for Peters v. Earthmed LLC, Case No. 1:24-cv-11255, Northern District of Illinois. The docket will show when final approval is granted and when claims open.

Step 4 — Submit your claim form before the deadline Once claims open, complete and submit your form by the stated deadline. Claim forms for FLSA settlements are typically simple — name, contact information, employment dates, and confirmation of your role. Late claims are generally not accepted.

Step 5 — Keep a copy of everything Save your confirmation number or email receipt after submitting. This is your proof of participation if any dispute arises about your claim.

Estimated time to complete: 10–15 minutes once claims open

Key Dates

Milestone	Date
Lawsuit Filed	October 31, 2024
Settlement Motion Filed	March 24, 2026
Judge’s Final Approval Hearing	TBD
Class Notice Mailed	TBD — after final approval
Claim Filing Opens	TBD — after final approval
Claim Filing Deadline	TBD — typically 60–90 days after notice
Expected Payment Date	TBD — typically 4–8 weeks after deadline

Frequently Asked Questions

Do I need a lawyer to file a claim in this settlement? 

No. Once the claims process opens, class members file directly through the settlement administrator — no attorney required. The named plaintiff’s lawyers already represent the class and will receive their fees from the settlement fund separately.

Is this settlement legitimate? 

Yes. The case is filed in the U.S. District Court for the Northern District of Illinois under Case No. 1:24-cv-11255, and the settlement is pending approval from a federal judge. It follows a clear pattern of successful tip theft cases against cannabis employers across the country.

When will I receive my payment?

 No payment timeline is set yet. The settlement still needs final court approval. After that, claims must open, the deadline must pass, and the administrator must process all submissions. Realistically, payments are likely months away from the March 2026 filing date. TBD on a firm date.

What if I missed the claim deadline? 

The claim deadline has not been set yet — it opens after final approval. If you are a former EarthMed budtender, you have time to prepare. Once a deadline is announced and passes, late claims are almost never accepted in FLSA settlements.

Will this settlement payment affect my taxes? 

Possibly. Payments from wage theft and tip theft settlements under the FLSA may be treated as back wages, which are generally taxable as ordinary income. You may receive a W-2 or 1099 from the administrator. Consult a tax professional once you know the nature and amount of your payment.

What if EarthMed never sent me a class notice?

 If you believe you qualify but did not receive a notice, contact the settlement administrator once one is appointed, or contact class counsel directly through the court docket. Failure to receive a notice does not automatically disqualify you if you are within the class definition.

Can I still work at EarthMed and file a claim? 

Yes. Retaliation against employees for participating in a wage and hour class action is illegal under the FLSA. Filing a claim cannot legally be used as grounds for termination, reduced hours, or any other adverse employment action.

What is a tip pool and why is it illegal to include managers?

 A tip pool is an arrangement where tips from customers are combined and divided among a group of employees. Under the FLSA, only employees who customarily receive tips — like budtenders and servers — can participate. Including managers or supervisors in a tip pool is explicitly prohibited and allows affected workers to recover the stolen tips plus additional damages.

Sources & References

• U.S. District Court, Northern District of Illinois — Peters v. Earthmed LLC et al, Case No. 1:24-cv-11255 (available via pacer.gov)
• U.S. Department of Labor — Tip Regulations Under the Fair Labor Standards Act

Last Updated: March 26, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.