Los Angeles Cannabis Dispensary Chain Faces Proposed Class Action

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On Tuesday, June 27, former employees of cannabis dispensary chain MMD Inc. (“MMD”) requested the Los Angeles County Superior Court to grant class certification in their lawsuit for failure to properly pay overtime wages, provide meal and rest breaks, and reimburse for necessary business expenses.

Lawsuit Against MMD Inc.

Plaintiffs Deshone Busby and Stephen Herrera sued MMD in January 2021, alleging that they were not properly paid for all time worked, including work performed off the clock. According to the complaint, they often worked more than eight hours a day and 40 hours a week without receiving overtime pay at one and a half times their regular rate of pay. Busby and Herrera also claimed that MMD failed to provide an uninterrupted meal break when they worked for more than five consecutive hours and did not receive pay for working through their meal and rest breaks. They also allege they were not reimbursed for cellphone expenses they incurred in connection with their job duties.

Motion for Class Certification

In their motion for class certification, Busby and Herrera argued that class treatment would be preferable to individual claims given the small amount that each member of the proposed class could obtain in the suit against MMD Inc. and its subsidiaries. They claim that there are more than 350 members in the proposed class and subclasses of workers for MMD’s shops across California. The proposed class would include all current and former non-exempt, hourly employees who worked for MMD Inc. and its subsidiaries from January 13, 2017 to present. Nine subclasses would include minimum wage claims, meal and rest period claims, reimbursement claims, and unfair competition claims. According to the motion, the proposed class and subclasses are easily ascertainable because MMD has members’ employment, time and payroll records, and contact information.

MNK Law will continue to monitor developments with respect to the lawsuit against MMD Inc. For more information on class action wage and hour defense in California, please contact us at info@mnklawyers.com.

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