Cannabis Law Group's Medical Marijuana Legal Blog
Prioritizing Fair Treatment of California Cannabis Employees
California cannabis regulators are taking pointed aim at mistreatment of cannabis company employees throughout the state. The Department of Cannabis Control has sought assistance from law enforcement agencies throughout the state to help identify and root out labor exploitation, which they say has become a serious problem in the marijuana industry. There are even allegations of cartel-driving human trafficking within the cannabis industry. 
Even mor recently, the California Department of Industrial Relations issued a reminder to cannabis employers that they are bound to comply with California labor law requirements. Further, it was noted that labor protections apply to ALL workers – regardless of the worker’s immigration status or even the legal status of the business. That means individuals operating unlicensed cannabis businesses can catch heat not only for operating unlawfully, but also for failing to follow state statutes pertaining to worker rights.
As longtime Los Angeles cannabis lawyers who also practice employment law in Southern California, we are closely familiar with the intersection of these issues and the unique legal questions that can arise.
Cannabis businesses are expected to provide workers with:
- Minimum wage. The statewide minimum is $15.50 as of January 2023. Some cities may impose higher minimum wages.
- Overtime paid at 1.5 the regular rate. Generally, overtime rates must be paid if an employee works more than 8 hours in a day or more than 40 hours in a week. If the employee works more than 12 hours in a workday, they must be paid double for all hours worked in excess of eight on the seventh consecutive day of work in a workweek.
- Valid workers’ compensation insurance. If the worker is hurt on the job, they have a right to expect workers’ compensation coverage, which is required by almost all employers in the state. If the company doesn’t have workers’ compensation insurance, they can be fined by the government and the worker can can sue them for damages.
The new unit of the DCC is aimed at taking action against cannabis companies that coerce or threaten workers, compel them to work in dangerous conditions, or deny them pay, benefits, or breaks to which they are entitled.
Last year, the Los Angeles Times published an investigation exposing the unfair treatment of cannabis workers, who are sometimes cheated out of wages, threatened with physical harm, or compelled to work in dangerous conditions that have actually proven fatal for some. Continue reading
Despite being widely labeled as hemp-derived novel cannabinoids, Delta-8 THC-O and Delta-9-THC-O have been declared illegal by the U.S. Drug Enforcement Administration. In a letter to a law firm dated Feb. 13, 2023, the agency stated in no uncertain terms that these popular products – referred to collectively under the title THCO – are legally considered “controlled substances.” This directly contradicts with previous federal court rulings that determined delta-8 products could be considered “hemp” and thus lawful under the 2018 Farm Bill.
As of March 1, 2020, California has allowed qualified medical marijuana patients and primary caregivers to receive free cannabis, donated by retailers. This welcomed update arose after the passing of 
California has not been as quick to block flavored e-cigarette, tobacco or cannabis vape products as other states across the country. But that could all soon change.
Washington, where requirements for marijuana businesses are strict, yet muddled. What started as a residency restriction meant to control big outside mega corporations from putting local businesses at a disadvantage has led to corporations researching ways to exploit residency loopholes and limiting who longtime residents can bring on as partners. Now, due to unclear definition of what qualifies a person for residency, some are concerned how to prove their status.
world’s largest marijuana market. California Growers Association, based in Northern California, is merging with Southern California Coalition out of Los Angeles to leverage their combined strength when voicing needs of the cannabis industry to political representatives, according to 
on a U.S. stock exchange by a marijuana producer. Ontario, Canada-based cannabis conglomerate Tilray went public on New York NASDAQ recently. The stock price spiked 30 percent in one day proving what we have been saying all along: cannabis is very, very good for business. According to a report from 
country in the world to legalize adult-use cannabis after Senate recently passed the long-awaited bill. Uruguay was the first country to pass legalization measures, with sales starting last year. Canada’s size and global standing, however, give it a unique opportunity to set the tone for what legal marijuana could look like for the rest of the world. It will still be a couple months of preparations, though, before legal sales can begin, according to