Total Mirage: Oasis Faces Class Action Lawsuit
In a lawsuit that could send shockwaves through New Mexico’s cannabis industry, Joseph Lee, a budtender at Oasis (OCC) in Albuquerque, has filed a collective and class action against his employer, EMPOCC LLC, and its owner, Kane Oueis. The suit, filed in federal court, doesn’t just allege wage theft—it paints a picture of a cannabis empire that systematically skimmed tips from its lowest-paid employees.
The Allegations: Skimming the Tip Jar
At the heart of the complaint is an age-old hospitality industry sin: tip pooling with the wrong people. According to the lawsuit, Oasis required budtenders to participate in a mandatory tip pool that included assistant managers and store managers—a clear violation of both the Fair Labor Standards Act (FLSA) and the New Mexico Minimum Wage Act (NMMWA).
It’s illegal under federal and state law for supervisors or anyone with authority to take a share of tips meant for front-line workers. But the suit claims Oasis not only allowed it—they built a system around it. Customers could tip in cash or via debit, and all of it went into a pool that was divided equally across the shift team—including the bosses.
And this wasn’t an isolated issue. The practice was allegedly enforced across all Oasis locations, with Kane Oueis himself calling the shots. He allegedly ran a messaging channel where he issued company-wide directives, including how tips were handled.
A Statewide Strategy, Not a One-Off
With at least eight locations across New Mexico, Oasis is accused of operating a uniform policy that deprived hundreds of budtenders of tip income.
Lee’s attorneys argue this was a deliberate, top-down wage theft operation, not a case of mismanagement or local error. The class could include 100+ workers, all of whom had tips sliced off the top since recreational cannabis was legalized in April 2022.
The Ask: Back Pay, Damages, and a Reckoning
Lee is demanding:
A declaration that Oasis violated the law
Back pay for all unlawfully withheld tips
Liquidated damages (double under FLSA, triple under NMMWA)
Attorney fees and costs
And a full jury trial
If successful, this case could cost Oasis hundreds of thousands, if not millions. Considering how often budtenders handle full shifts with tip jars half-full, that math adds up fast.
Unjust Enrichment, Too
The suit also hits Oasis with a common law unjust enrichment claim. The idea? Even if they dodge the wage laws, they still shouldn’t be allowed to keep money that rightly belongs to frontline workers. It’s a catch-all backup plan, meant to keep them on the hook.
Why This Case Matters
This lawsuit isn’t just about Oasis. It’s a litmus test for how retailers—especially in fast-growing, loosely regulated states—treat their workers in the post-legalization gold rush. Budtenders, often seen as disposable, are now fighting back, demanding recognition as skilled labor deserving of their full take-home pay.
If Oasis loses, other chains with similar setups might have to rethink how they handle their payroll, their management structure, and their entire relationship with staff.
What Happened at Schwazze?
A similar controversy bubbled up at Schwazze, though it didn’t make it to court in the same way. Reports circulated in mid-2023 that some budtenders at Schwazze-affiliated stores in New Mexico were also pressured into tip pooling with shift leads and salaried managers. Unlike Oasis, Schwazze quickly shut down the practice after internal reviews and pushback from employees.
The company avoided legal action—after settling with the parties for over $500k in compensation. Sources close to the situation claimed Schwazze’s legal team moved fast once the FLSA violation risks were flagged.
That swift cleanup may have saved them from a class action. Oasis? Not so lucky.
Bottom line: The industry is no longer the wild west. Dispensaries that treat their workers like barbacks instead of professionals are going to get smoked—legally and financially.
