It's no secret to you that the cannabis industry is highly regulated. If it wasn't hard enough to keep up with those regulations, you also have to keep up with the everyday struggles of running a business.
Putting all of this on you can be too much. You need to focus on the growth of your business. That's where Human Resources Outsourcing (HRO) comes in. With the right HRO partner, you can rest assured that your cannabusiness is compliant, giving you the extra time and energy to focus on creating a great place to work and growing your organization.
Cannabis Compliance and Regulations
Your challenges as a cannabusiness owner are plenty. From finding a bank that will handle your money to attracting and retaining top talent, your focus is constantly being pulled in numerous directions.
Add to that the uncertainty of cannabis compliance, and you have daily headaches. The Food and Drug Administration (FDA) recently announced additional protections for cannabis-related products. This adds just one more wrinkle of things you need to stay compliant on.
Compliance Issues to Get Ahead of in 2022
With increased sales, the cannabis industry is facing additional regulations. In 2020 alone, sales of cannabis products increased by nearly 70%. Even before this substantial growth in the industry, you already faced massive compliance hurdles. HR personnel, if you even have them, are overwhelmed and constantly trying to keep up with regulations.
If you're doing this alone, you probably cannot give your full attention to any of the many areas of your business you need to focus on. Here are a few compliance issues to stay on top of in 2022, something an HRO can help you achieve by saving you time and money.
Hiring and Employment
Today's job market is tough in every industry. With the cannabis industry seeing exponential increases, it's hard to find and keep high-quality workers. Many companies take shortcuts to get people hired faster, but that opens their business up to potential compliance violations.
Make sure that all of your job postings comply with the Americans with Disabilities Act (ADA), Civil Rights Act of 1964, and the Equal Employment Opportunity Act. These laws require adherence to fair hiring practices, and violations can be costly and embarrassing.
Taxes and Payroll
Cannabusinesses pay taxes just like any other company. However, the cannabis industry is subject to additional taxes. What makes this even more complex is finding a bank that will hold your company's accounts. Because cannabis is illegal at the federal level, many banks avoid dealing with companies in this industry.
You must also ensure your payroll is accurate. Wage and hour laws can be confusing and do vary from state to state. You need to accurately classify your employees and pay them correctly, including overtime. Different states have different laws for overtime calculations, so make sure you're adhering to your state laws.
Employers are required to provide training to new employees for their safety but also for their job. The cannabis industry has some requirements which go beyond normal employer training.
California, for example, requires cannabis employers to give specific training to at least one supervisor and one employee. Other states have similar requirements that every cannabusiness must adhere to or face stiff penalties.
Changing State and Local Laws
The cannabis industry is in constant flux. The majority of states have legalized some form of marijuana usage, though still fewer than half of all states have fully legalized adult-use recreational marijuana. But that doesn't mean other states never will.
Why is this important to you? First, because you want to know potential states you can expand into as legalization moves forward. And second, because you need to be aware of regulations in your industry.
At present, only 14 states do not allow any form of marijuana usage. Most of these states are resistant to legalization but have seen interest groups gaining traction, at least for the initial steps of adult-use medical marijuana.
Even if you operate in a medical-only state, you need to be aware of changing regulations that may open your state up to full recreational use. By knowing what's coming, you can prepare your business for expanding and growth, while ensuring absolute compliance.
How an HRO Helps
Running a cannabusiness is hard enough. Don't make it harder by trying to do everything yourself. Asking for help, especially with the most complex and legally tumultuous issues you face, is a good idea. And that's where an HRO steps in to help you.
With a trusted HRO that specializes in the cannabis industry, you gain access to HR experts who understand your business and the unique regulations you face in the industry. Compliance is vital to your company's success. Without trusted experts you can rely on to give you legally accurate information and guidance, you put your business at risk because of costly compliance violations.
You cannot be expected to know every little regulation, but even innocent mistakes can lead to costly fines and penalties. Avoid this by partnering with an experienced HRO that understands the cannabis industry and who will work diligently to ensure your company stays compliant.
Teamployer Keeps You Compliant
You know better than most people how highly regulated the cannabis industry is and how much of a challenge staying compliant is for your business. If you have internal HR staff, something not every cannabusiness can afford to do, they are probably working hard to find you the best employees in your area and staying focused on keeping those employees engaged and retained. They have little time to worry about payroll compliance, tax compliance, and ever-changing cannabis laws and regulations.
That's where experts at a cannabis-specific HRO can help. You need to trust that your business is in good hands. You need to trust that the information you're getting is accurate and will keep your company out of legal trouble.
When you partner with Teamployer, a cannabis-specific HRO, you can trust that your company's best interests are in mind. Contact Teamployer today so we can show you how to stay compliant.