Written By Corie J. Anderson - Peters, Revnew, Kappenman & Anderson, P.A.
Minnesota Cannabis Dispensary Wage and Hour Issues – How to Pay Employees
In just a few short weeks, August 1, 2023, recreational cannabis (marijuana) will be lawful in Minnesota (under state law). However, recent news has also highlighted the fact that it may take up to 18 months for new cannabis dispensaries to obtain a license to sell. In the meantime, new business owners are setting up their cannabis business, hiring employees, and doing all the things necessary to obtain the license. So, what wage and hour considerations should you think of if this is your business?
Federal Fair Labor Standards Act
As far as we know, yes, it applies, and yes, you should follow it. While there has been an argument before the 10th Circuit Court of Appeals (this is not where MN is located – we are in the 8th Circuit) that a cannabis employer need not follow the FLSA as cannabis is federally unlawful, the Court rejected that argument, rather holding that the FLSA does apply.
Employee v. Independent Contractor
Don’t fall for this trap! Yes, your best friend, neighbor, etc. whomever is going to help you start up this business may want to be an independent contractor to (try to) get around certain taxes, don’t do it. I have posted previously several times about this distinction so you can search it, but here’s the short of it – if it looks like a joint, smells like a joint, it probably is a joint. If a worker acts...
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