Washington State

Cannabis shops could owe workers $300K for overtime, sick pay, Washington lawsuit says

The Washington State Department of Labor and Industries filed a lawsuit against Lovely Buds cannabis shops on May 11, 2022. The shops are accused of not paying earned wages to employees.
The Washington State Department of Labor and Industries filed a lawsuit against Lovely Buds cannabis shops on May 11, 2022. The shops are accused of not paying earned wages to employees. Associated Press file photo

A cannabis company in Washington is facing a lawsuit over unpaid wages.

The suit was filed on May 11 by the Washington State Department of Labor and Industries and the Washington State Office of the Attorney General against Lovely Buds shops, according to a news release.

“Our goal in this case and any other wage and hour case is simple: Get these employees the wages and benefits they’ve earned,” Labor and Industries director Joel Sacks said.

It’s the first lawsuit of this kind against a cannabis retailer in Washington, the release says.

Lovely Buds could owe employees $300,000 in overtime and unpaid wages from the past three years, the release states.

Lovely Buds has three cannabis shops in Spokane: Sprague, North and Division. The parent company, Cannabis Green, and the majority owners Elizabeth and Todd Byczek are also listed on the state’s lawsuit.

The business owners did not immediately respond to McClatchy News’ request for comment.

The state labor department first received a wage complaint on the company in 2019. The department learned employees would only get overtime for working at one store.

“In many cases, employees worked more than 40 total hours at different stores the company owned without receiving overtime,” the news release states. “Sick leave was parceled out in much the same way.”

Lovely Buds gave some pay records to the labor department, but then took the state to court in an effort to stop the investigation, the news release says.

The department said a further investigation in the Spokane Superior Court will determine how many of the company’s 75 to 100 employees experienced unpaid wages, the release states.

“Failing to pay workers the overtime pay and benefits they earned is wage theft — period,” Attorney General Bob Ferguson said in the release.

A wage-payment complaint can be made with the labor department by calling 360-902-5316 or 1-866-219-7321. A complaint can also be filed online.

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This story was originally published May 16, 2022 at 4:41 PM with the headline "Cannabis shops could owe workers $300K for overtime, sick pay, Washington lawsuit says."

Helena Wegner
McClatchy DC
Helena Wegner is a McClatchy National Real-Time Reporter covering the state of Washington and the western region. She’s a journalism graduate from Arizona State University’s Walter Cronkite School of Journalism and Mass Communication. She’s based in Phoenix.
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