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.

Allegations of employee abuse involving some 200 cannabis contractors and farms (half lacking state licensing) have been filed since marijuana first became legal in California. An estimated 37 cannabis workers have died on the job since 2016. In Lucerne Valley in December, an 18-year-old cannabis worker died in a greenhouse from suspected carbon monoxide poisoning. It was the same cause of death for a 30-year-old Mexican who died while working at a greenhouse in San Bernardino County. Carbon monoxide poisoning is the No. 1 cause of death among cannabis workers in California.

Other deeply troubling cases involve alleged instances of Argentinian immigrant workers toiling 14-hour days for weeks on end behind locked gates on a Trinity County farm – using a single-burner propane stove for cooking outdoors, a portable toilet, and a shipping container in which some slept at night. Others slept in tents or in their cars. Some said they were paid less than $8 hourly – rarely on time – and provided text messages showing their employer threatened to report them to immigration authorities if they complained.

Longtime California cannabis lawyers know that part of the problem is that the cannabis industry was underground for so long. For decades, cheap, vulnerable laborers were sought for work that was paid in cash and commonly exploited. Still, this doesn’t excuse the continuation of such practices now that the industry has been pulled aboveboard.

A number of sheriff’s offices in Northern California have started teaching officers in the narcotics division about how to identify, investigate, and intervene in suspected human trafficking situations.

The DCC has it’s own such unit, based in Fresno. It’s called the Human Trafficking/Exploitation Assessment and Response Team (or HEART). This marks a notable shift in the DCC’s response to labor exploitation. The agency had been primarily focused on licensing and regulating commercial cannabis operations. Any suspected cases were simply forwarded to state labor agencies. Now, the agency has more than a half dozen detectives who can work on human trafficking cannabis cases and refer to them to prosecutors and/or federal authorities. The team also provides training to law enforcement.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Cannabis workers face death and exploitation. California is stepping in after Times investigation, May 5, 2023, By Paige St. John, L.A. Times

More Blog Entries:

Los Angeles Cannabis Businesses Must be Audit-Ready, May 28, 2023, Los Angeles Cannabis Business Lawyer Blog

As our Los Angeles CBD lawyers recognize, CBD has been on store shelves legally across the U.S. since the passage of the federal 2018 Farm Bill. Recently, advisory notes from the Substance Abuse and Mental Health Services Administration indicate its popularity has ballooned, now being available from some 270,000 retailers across the country. It’s sold in beverages, tinctures, topical ointments, food, and more.

The primary point stressed by federal regulators is that whatever CBD’s benefits, it’s not intended or recognized as safe for children unless expressly approved by the U.S. Food & Drug Administration (FDA) for a specifically stated purpose. As it stands, the only approved purpose for administering CBD to children is to help treat rare cases of epilepsy. Even then, only the purest form of CBD is recommended.

It’s estimated that one-third of Americans used CBD or a CBD-infused product at some point in 2020.

Among the main concerns listed by the federal agency:

• Lack of clear safety standards.
• Inconsistent quality control.
• Lack of uniformity in labeling.

All of these, the agency said, leads to additional concerns for accidental intoxication or overdose – primarily involving children. The primary health risks include potential for adverse drug interactions, adverse impacts to development and reproduction, and liver toxicity. These statements, however, lack the clinic research that might conclusively determine the safety (or lack thereof) with regard to CBD products. They simply haven’t been studied adequately – thanks to the U.S. government’s own rules.

What’s more, the FDA didn’t go out of its way to list the benefits of CBD – which include reduced reliance on powerful prescription medications like opioids for treatment of chronic pain and other conditions.

Despite this (and fervent calls from CBD industry advocates, stakeholders, and California lawmakers), the FDA has already stated it’s not going to issue rules specific to CBD that would allow it to be lawfully used as a food item or dietary supplement. The agency said it intends to rely on Congress to create these new rules.

The agency has also turned down numerous requests from Americans seeking FDA rules for CBD marketing. This has left California CBD retailers and manufacturers in the dark about what rules they need to follow – making it all the more imperative to rely on an experienced cannabis lawyer for guidance on walking the legal tightrope on everything from banking to advertising to sales to warehousing to order fulfilment.

It’s estimated that about 40 percent of CBD purchases are made directly from marijuana retailers. About a third are made from different retailers and another third are shopped online. The rest are gotten from some other sourcing.

It’s fairly well-established that because cannabis retailers are so heavily regulated and taxed, their products are going to be more uniform, more clearly labeled, and more pure. CBD products must contain no more than 0.3 percent of the THC, the psychoactive component in cannabis products. Delta-8 THC-O and Delta-9-THC-O have recently drawn the ire and enforcement arm of federal authorities for violating this rule.

If you have questions about the legality of your CBD products sold in the Los Angeles region or anywhere in Southern California, we can help.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

SAMHSA Advisory – Cannabidiol (CBD) – Potential harms, Side Effects, and Unknowns, February 2023

More Blog Entries:

California Marijuana Sales & Use May Still Pose Landlord Legal Challenges, Feb. 14, 2023, Los Angeles Cannabis Lawyer Blog

A top advisor to Joe Biden, the Democratic presidential nominee, stated emphatically that these would be top priorities for the new administration if he’s elected.

In an interview with MSNBC, the advisor referred to these drug reform policy proposals as “modest,” but also imperative, underscoring that neither Biden nor his pick for vice president, Kamala Harris, think people should be jailed for non-violent drug offenses.

This isn’t a total 180 from the campaign’s previous platform on drug policy, but it does indicate that marijuana reform is something that is being pushed to the forefront. The idea of decriminalizing – and going a step further to legalize – marijuana at the federal level was part of the recommendations made by a criminal justice task force that Biden and Sen. Bernie Sanders (I-VT) launched earlier this year. But Biden’s position doesn’t go quite that far.

Some in the Democratic party are pushing for bigger policy changes, but certainly, our Los Angeles cannabis lawyers know, decriminalization would be a solid start. Biden is also in favor of legalizing medicinal marijuana and rescheduling the plant under the U.S. Controlled Substances Act. Beyond that, Biden is in favor of allowing states to set their own marijuana policies.

As of this writing, only eight states in the country consider marijuana fully illegal. Most allow medicinal marijuana, but otherwise criminalize possession. In 11 states, including California, the plant is considered fully legal – except, of course, under federal law.

For the first time in history, the House of Representatives is slated to vote on legalizing marijuana at the federal level with the MORE Act. That vote is slated for Sept. 21st. If it passed, it would remove cannabis from the federal list of controlled substances and expunge the criminal records of some with prior marijuana-related convictions. States would still be given authority to pass their own regulation. The fact that the bill even made it this far is noteworthy, and indicative of how much views have changed regarding the drug. A Gallup poll from last year indicated nearly 70 percent of Americans supported legalization, though there was still a pretty sharp partisan line.

Advocates aren’t getting their hopes up, as the bill is probably going to fail in the Senate. But there is reason to believe that may change in the next few years, perhaps regardless of who is president because of the many complications the conflicts between state and federal law presents. Marijuana businesses struggle to secure basic services like banking and insurance. That has meant some have all-cash operations that have left them vulnerable to security issues. Decriminalizing and legalizing the drug would provide more clarity to local, state and federal officials.

As for the expungements, supporters say this is a racial justice issue. An analysis released last year by the ACLU found that Black people were more than 3.5 times more likely than white people to be arrested for marijuana possession crimes – despite committing them at the same levels.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

House will vote on federal marijuana legalization for the first time, bill’s future in Senate uncertain, Sept. 4, 2020, By Nicholas Wu, USA Today

The San Diego Crackdown KPBS reports that San Diego law enforcement and prosecutors began targeting illegally-operated dispensaries in March 2017. More than sixty dispensaries have been shut down in this time. The San Diego Police Department also reports that dozens of property owners and operators have been fined, charged criminally, and prosecuted for operating medical marijuana businesses without a license. All employees of the business – not just owners – are subject to prosecution. In August 2017, the Police Department warned that even delivery drivers could face criminal charges. Two of the most recent raids indicate a shift in San Diego law enforcement policy. Prior to these operations, the San Diego PD had mostly avoided delivery services, focusing instead on dispensaries with physical retail locations. On August 2, 2017 two delivery services were raided. This may signal a shift toward prosecutions of delivery services which operate illegally. Northern California Crackdowns San Diego is not the only California locality looking to end illegal marijuana operations. According to U.S. News and World Report, Calaveras County Sheriff Rick DiBasilio has reported the largest marijuana raid in county history. The crackdown is reported to have affected more than a dozen farms over four days. More than 27,000 marijuana plants were seized and thirty-five people were arrested. $7000 in cash and eleven firearms were seized after the execution of twenty-three search warrants. Twenty-five tons of marijuana were ultimately destroyed after the raids. The National Guard, the district attorney’s office, the California Highway Patrol, and environmental offices for the state and county were all involved in the planning of the operation. It took six months of preparation to execute the crackdown. Six thousand plants were seized from one of the targeted farms, which is associated with the Sugarleaf Rastafarian Church. The church claims that it has a religious exemption for the cultivation of marijuana, which is used as sacrament for churchgoers. California law recognizes no such religious exemption. Not surprisingly, Calaveras County is one of the many California municipalities considering a complete ban on cannabis activities within its jurisdiction. Ensure Your Cannabis Business is in Compliance There are countless state, county, and local regulations which medical marijuana dispensaries must comply with in order to conduct business operations lawfully. It can be difficult to comply with all applicable regulations. This daunting task will be even further complicated when the state begins issuing business licenses for the sale of recreational marijuana in January 2018. Regulations, restrictions, state laws, and local ordinances will all affect the regulatory landscape dramatically. Consult with an experienced Los Angeles cannabis criminal defense lawyer to ensure that your business is in compliance with all current and upcoming laws. Improper recreational and medical use business licenses, financial operations, tax reporting, and other business operations can subject cannabis business owners to criminal liability. The Los Angeles Cannabis Law Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734. Additional Resources: San Diego Police Raid 2 More Marijuana Dispensaries, August 17, 2017, by City News Service, KPBS More Blog Entries: Federal Judge Blocks California Marijuana Growers’ Prosecution. August 31, 2017 by Cannabis Law Group

In the midst of feverish work and complicated legal structures, the City of Los Angeles is garnering worldwide interest in the efficacy of its new cannabis regulations. Learn more about the system that could save taxpayers millions of dollars in regulatory costs and ensure a smooth transition into legal sales of recreational marijuana. The L.A. Plan According to Forbes, Los Angeles voters overwhelmingly passed Proposition M in March 2017. The legislation, which was carefully crafted with input and support from the cannabis industry, utilizes a four-pronged approach to create enforceable and stable regulations for the cannabis industry. First, it emphasizes sensible regulation which addresses the realities of the cannabis industry. This became a priority after advocates witnessed the “disaster” of the old Prop D, which ineffectively regulated medical marijuana without meeting the needs of the industry. Second, Prop M creates a licensing mechanism, enabling cannabis entrepreneurs to obtain physical business licenses for the operation and ownership of recreational cannabis businesses. Third, the legislation takes a pragmatic approach to the taxation of cannabis operations. Business taxes – currently the lowest in the nation at 1% to 2% – will be gradually raised to more sustainable rates. At the same time, taxes for marijuana collectives will be slightly lowered from 6% to 5%, in order to level the competitive playing field with marijuana cultivators and distributors. And finally, the fourth prong of Proposition M focuses on enforcement, which is made easier and more cost-effective by clear guidelines in the other provisions of Proposition M. Why Proposition M is Making a Splash The highly researched and developed legislation is getting attention worldwide, as other states and nations consider the best regulatory mechanisms for marijuana businesses. The Southern California Coalition reports that it has received inquiries from legislators across the United States and North America, and even Europe. In developing the mechanisms of Proposition M, enforcement was specifically designed as the last element and legislative priority. This is because effective enforcement can only be made after clear laws are in place. Federal, state, and local law enforcement agencies have spent billions of dollars in recent decades in an attempt to enforce marijuana laws. Unfortunately, because the laws are unclear, these resources are often wasted entirely. Cases are dismissed because of conflicts between state and federal law. Confusing technicalities make it difficult for officers to know whom to arrest and what evidence to seize. Prosecutors and defense attorneys argue over these legal technicalities in court, effectively wasting more taxpayers dollars on unclear regulations. All of these problems could be avoided by having clear guidelines to enforce without the need for excessive or wasted police raids or endless court battles. An experienced Los Angeles cannabis business licensing lawyer can help business owners ensure they are in compliance with all federal, state and local regulations. The Los Angeles Cannabis Law Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734. Additional Resources: A California Plan to Save Millions on Cannabis Regulation Is Getting Props Worldwide, June 7, 2017, by Janet Burns, Forbes More Blog Entries: Preparing the California Cannabis Industry for Recreational Use Regulations, July 9, 2017 by Cannabis Law Group

Food and Beverage The Los Angeles Times reports that Lagunitas Brewing Co. has released a “SuperCritical Ale” – a hoppy brew made with hops and cannabis. It contains no THC (the psychoactive chemical in cannabis). This brew venture is part of a larger working relationship between Lagunitas and CannaCraft, Inc. CannaCraft provided the terpenes used in the SuperCritical Ale. In turn, Lagunitas is assisting CannaCraft in the development of new vaping products for it line of cannabis extracts, with its brewers provide guidance on obtaining a beer-like aroma for the products. The Entertainment Industry According to Business Insider, Netflix is also looking to capitalize on marijuana through marketing tie-ins. To promote its new weed-themed show “Disjointed”, Netflix teamed with a West Hollywood medical marijuana dispensary to distribute strains of cannabis named after its various shows. Variety reports that visitors to the pop-up store could select such strains as Camp Firewood (for “Wet Hot American Summer: Ten Years Later”); Banana Stand Kush (from “Arrested Development”); Prickly Muffin (from “Bojack Horseman”); Vodkush (from “Chelsea”); Peyotea 73 (in honor of “Grace and Frankie”); Sassafrass OG (from “Lady Dynamite”); Baka Bile (for “Santa Clarita Diet”); Poussey Riot (for “Orange is the New Black”) and Moon 13 (in honor of “Mystery Science Theater 3000”). “Disjointed” inspired three strains: the Omega Strain; Eve’s Bush; and Rutherford B. Haze. Product Placement One Hollywood marketing professional is working to use her industry insider experience to bring a different image of cannabis users to film and TV. The Huffington Post reports that Cheryl Shuman started as a props specialist focused on sunglasses. Both the Ray Bans worn by Tom Cruise in “Risky Business” and the Gargoyles worn by Arnold Schwarzenegger in “Terminator” were Shuman’s selections. Both styles sold in droves after Shuman put them on film. Now, she works as a marketing and public relations consultant based in Los Angeles. Shuman began using marijuana medically in the mid-1990s after being diagnosed with cancer. Now, with her public relations expertise, she wants to change the image of the “High Times generation that came with their pot leafs and all that”. Shuman envisions a rebranding of marijuana culture in a way that contrasts with the old “druggie loser” motif. She predicts cannabis will be a big business. “Imagine marijuana on QVC.” Cheech Marin, the beloved comedian famous for his portrayal of a classic “druggie” marijuana user, expresses the same hope for the rebranding of cannabis culture. He hopes that in one hundred years, the Cheech and Chong name will be recognized, but that the image will be too exaggerated and over-the-top to ever have been considered real. The legalization of recreational marijuana presents many exciting business opportunities, pairings, ventures, and other collaborations. Contact an experienced Los Angeles cannabis business planning lawyer to ensure that your cannabis business ventures are executed as smoothly as possible. The Los Angeles Cannabis Law Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734. Additional Resources: Lagunitas rolls out a cannabis beer, August 24, 2017, by Bill Swindell, the Los Angeles Times More Blog Entries: California Vineyards Entering Marijuana Business, June 4 2017, by Cannabis Law Group