3 Former Denny’s Employees Sued For Allegedly Stealing $500K In Tips

The allegations stem from a Denny's restaurant located in Kamloops, British Columbia

Three former employees of a Canadian Denny’s are being sued for allegedly stealing approximately $500,000 in tips over two years.

According to the Western Investor, Northland Properties Corp., which operates the restaurant, filed a lawsuit against former employees, alleging they misappropriated funds from an employee tip account. The suit was filed in the B.C. Supreme Court in December 2025. Mounties in B.C. (British Columbia) are investigating the alleged fraud. The restaurant is located in Kamloops, British Columbia.

The lawsuit seeks damages for theft, conversion, breach of contract, and civil fraud.

In the lawsuit, Northland alleged it found “multiple unauthorized digital transfers” from the Denny’s tipping system to an employee’s account between Nov. 10 and Dec. 1, 2025. An audit found more than $11,000 in one of the former employee’s accounts, and the defendant allegedly admitted to carrying out the illegal scheme with a former Denny’s supervisor.

The former worker revealed that he was shown records indicating that a former manager had “removed substantial funds” from the tipping system, totaling nearly $495,000 between 2023 and 2025. That manager quit Nov. 3, 2025.

On the day he resigned, he sent an email to a Denny’s server requesting the “financial verification codes” to access the restaurant’s “Tips Today” digital system.

The company also alleges that the former manager texted the server five days later, requesting additional verification codes, and that the server “believed she was helping” him make repayments. She “did not fully understand how access to the tip-distribution platform operated.”

Northland did state that the alleged fraud was reported to the Kamloops RCMP (Royal Canadian Mounted Police) after the company discovered the transfers, according to the lawsuit.

According to the Human Resources Director, the lawsuit stated, “At all material times, the defendants owed the plaintiff duties of honesty, fidelity, confidentiality, and lawful use of employer property and systems. The defendants breached those duties.

“The defendants were unjustly enriched through the misappropriation of funds belonging to the plaintiff.”