A lawsuit alleges three Denny’s employees in Kamloops misappropriated over $500,000 in tips between 2023 and 2025, with RCMP investigating the claims
Civil Suit Filed Against Denny’s Workers for Misappropriation of Tips
A civil suit in the Supreme Court of B.C. accuses three Denny’s workers of misappropriating over $500,000 in tips. This occurred at a Kamloops location between 2023 and 2025.
Kamloops RCMP are actively investigating the allegations.
Details of the Allegations
Northland Properties Corporation, the hospitality group behind Denny’s in Canada, claims a recent audit found $11,000 was illicitly moved from the restaurant’s electronic tip system. This scheme involved two employees. A third employee allegedly inspired them by previously stealing over $494,000.
The five-page notice of claim lacks details about the scheme or how the tipping system was abused.
Denny’s uses a digital tip distribution platform called Tips Today to collect and distribute funds to employees.
Timeline of Events
| Date | Event |
|---|---|
| Nov. 10 – Dec. 1 | Unauthorized digital transfers discovered |
| Dec. 16 | Suit filed by Northland Properties Corporation |
| Nov. 3 | Third defendant resigned |
The suit states that the first two employees worked together to transfer tips. One used access codes to access the tip platform and send money to the second. The second man kept some money and e-transferred a portion back to the first man.
During a meeting, one defendant revealed that their scheme mirrored that of a former employee.
The suit claims the third defendant may have misappropriated approximately $494,533.01 between 2023 and 2025.
Additional Information
A former employee, not connected to the lawsuit, told CBC News that cash tips went directly to servers. Credit card or debit tips went into the online system, and servers received a card with tips owed to them.
The suit does not clarify if the misappropriated amounts were meant to be shared with other servers or how they were divided.
The suit states, “At all material times, the defendants owed the plaintiff duties of honesty, fidelity, confidentiality, and lawful use of employer property and systems.” It claims the defendants breached these duties.
Northland seeks damages for theft, conversion, civil fraud, breach of employment duties, breach of contract, and breach of fiduciary obligations. The relief sought includes all funds claimed to be illegally taken by the three men.
