Dep't of Lab. & Indus. v. Cannabis Green, LLC

569 P.3d 303
CourtWashington Supreme Court
DecidedMay 29, 2025
Docket102,922-5
StatusPublished

This text of 569 P.3d 303 (Dep't of Lab. & Indus. v. Cannabis Green, LLC) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dep't of Lab. & Indus. v. Cannabis Green, LLC, 569 P.3d 303 (Wash. 2025).

Opinion

FILE THIS OPINION WAS FILED FOR RECORD AT 8 A.M. ON MAY 29, 2025

IN CLERK’S OFFICE SUPREME COURT, STATE OF WASHINGTON SARAH R. PENDLETON MAY 29, 2025 SUPREME COURT CLERK

IN THE SUPREME COURT OF THE STATE OF WASHINGTON

DEPARTMENT OF LABOR AND No. 102922-5 INDUSTRIES, EN BANC Petitioner, v. Filed: May 29, 2025

CANNABIS GREEN, LLC dba LOVELY BUDS, a Washington limited liability company, SIMPLY BUD, LLC dba LOVELY BUDS NORTH, a Washington limited liability company, TLE OF SPOKANE, LLC dba LOVELY BUDS DIVISION, a Washington limited liability company, and TODD BYCZEK and ELIZABETH BYCZEK, in their individual capacities and as a marital community,

Respondents.

GORDON McCLOUD, J.—When an employer fails to pay its employees,

the Department of Labor & Industries (L&I or DLI) “may . . . [o]rder the payment

of all wages owed the workers and institute actions necessary for the collection of

the sums determined owed.” RCW 49.48.040(1)(b). No. 102922-5

In this case, L&I sued employer Cannabis Green1 in Spokane County

Superior Court to recover wages owed to its employees, plus statutory double

damages and attorney fees. But according to Cannabis Green, L&I did not first

“order the payment of all wages owed the workers.”

Cannabis Green moved to dismiss on the ground that the statutory language

quoted immediately above requires L&I to issue a formal order directing the

employer to pay a sum certain to its employees first, as a prerequisite to filing suit,

and that L&I failed to do so. The Superior Court agreed and dismissed L&I’s

complaint, and the Court of Appeals affirmed.

We reverse. We agree with Cannabis Green and the lower courts that the

statute requires L&I to “[o]rder the payment of all wages owed the workers,” RCW

49.48.040(1)(b), first, as a prerequisite to filing suit. But we disagree with

Cannabis Green’s argument that L&I must take this first step by issuing a formal

administrative or director’s order that directs the employer to pay a predetermined

sum certain at this preliminary stage of the proceedings. The statute certainly

doesn’t say that, and its context does not suggest that.

1 Respondents Cannabis Green LLC dba Lovely Buds; Simply Bud LLC dba Lovely Buds North; TLE of Spokane LLC dba Lovely Buds Division; and their owners, Todd and Elizabeth Byczek (collectively Cannabis Green).

2 No. 102922-5

L&I can therefore satisfy its obligation to “order the payment of all wages

owed the workers” in other ways, such as with an informal directive to comply

with the relevant labor laws that it alleges were violated, even without specifying

the exact sum owed at this early stage.

The facts presented here, in particular L&I’s muddled communications to

Cannabis Green, make it difficult to decide whether L&I complied with this

statutory obligation. Believing that Cannabis Green had engaged in some wage and

hour misconduct, L&I proposed a settlement. Nothing in the settlement stated that

employees would receive monetary compensation for their lost wages. Instead,

Cannabis Green would pay $25,000 in legal fees to the department. L&I offered no

liability release to Cannabis Green for the alleged unpaid employee wages, and it

demanded that Cannabis Green continue to investigate itself, with no promise of

resolution or liability release in future years.

However, the proposed settlement agreement did identify the wage and hour

law that it alleges Cannabis Green violated, it listed Cannabis Green’s practices

that allegedly violated the identified law, it listed the time periods during which the

alleged violations occurred, and it stated the steps that L&I would take to obtain

redress for the workers if Cannabis Green declined to settle.

3 No. 102922-5

While L&I did not use the word “order” or “directive”—and while L&I’s

demand for payment to the workers was conditioned on Cannabis Green’s refusal

to settle—L&I’s proposed settlement agreement still provided enough information

to constitute an informal directive to the employer to redress the alleged violations.

Thus, we hold that L&I complied with its statutory obligation to “order the

payment of all wages owed the workers” as a prerequisite to filing suit based on

those alleged violations. We therefore reverse the decision of the Court of Appeals,

reverse the granting of summary judgment, and remand to the trial court for further

proceedings consistent with this opinion.

FACTS AND PROCEDURAL HISTORY

I. L&I investigates a Cannabis Green employee’s wage complaint in 2019

Todd and Elizabeth Byczek own and operate three cannabis retail stores in

Spokane (collectively Cannabis Green). Clerk’s Papers (CP) at 43-44. The three

stores employ between 75 and 100 people. Id. at 174. Employees are required to

work shifts at all of the stores. Id. at 43.

In January 2019, a former employee filed a wage complaint under the wage

payment act (WPA), chapter 49.48 RCW, against Cannabis Green, alleging

overtime violations. CP at 121, 45; see RCW 49.48.083. The employee alleged that

4 No. 102922-5

Cannabis Green failed to pay her overtime for the total hours she worked across all

three stores. CP at 213.

L&I investigated and concluded that Cannabis Green had a joint-employer

relationship with respect to its employees at all three stores, so state laws required

it to pay overtime when an employee’s total hours exceeded 40 hours in a week

across all the stores. Id. In May 2019, L&I issued a citation and notice of

assessment under RCW 49.48.083(1) against Cannabis Green for failing to pay the

employee overtime. Id. at 45. In October 2019, Cannabis Green settled the wage

complaint as to that employee. Id. The settlement did not affect any other worker.

Id.

II. L&I’s investigation reveals additional wage and hour violations, but Cannabis Green declines to provide complete payroll records and rejects a proposed compliance agreement and mediation

L&I’s investigation of the worker’s wage complaint, however, revealed that

Cannabis Green had also violated overtime laws as to other employees. CP at 46-

47. In March 2020, L&I sent correspondence to Cannabis Green, requesting certain

pay stub and payroll records. Id. at 46, 220-21. Cannabis Green provided the

records and responded to L&I’s follow-up questions. Id. at 46, 223.

5 No. 102922-5

In October and November 2020, L&I requested, via letter, additional payroll

records and work schedules, as well as information about Cannabis Green’s sick

time, break, opening and closing, and tip policies. Id. at 46, 225.

Cannabis Green did not comply with either request. Id. at 47. Instead, in

December 2020, it sent a letter to L&I, stating that it objected to the investigation

and that it refused to provide any additional information. Id. at 47, 216.

L&I responded in March 2021 by trying to serve administrative subpoenas

on the Byzceks to obtain the information the company declined to provide

voluntarily. Id. at 47. But the process server could not find the Byzceks at the

stores and did not attempt service at their home. Id. at 216.

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Cite This Page — Counsel Stack

Bluebook (online)
569 P.3d 303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dept-of-lab-indus-v-cannabis-green-llc-wash-2025.