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Saturday, August 8, 2026

New Series: Employment Law and the Cannabis Industry - JD Supra

This blog series addresses common employment-related issues for cannabis industry professionals.

This first post addresses timekeeping considerations for manufacturers and retailers of cannabis products to ensure compliance with applicable state and federal law. Future posts will address other employment-related issues, including the administration of meal and rest periods, overtime and regular rate considerations, engaging independent contractors, exempt and nonexempt employment classifications in industry-specific roles, accommodating employee off-duty cannabis use, and similar topics.

Wage and Hour Compliance: Timekeeping

Large-scale class actions and other litigation alleging violations of legal obligations regarding payment of wages and related recordkeeping constitute a large percentage of active employment-related litigation and can expose businesses, including individual founders and owners, to exorbitant financial risk. Ensuring accurate timekeeping and compliance with related requirements is key to avoiding such liability.

The Fair Labor Standards Act (FLSA) governs pay practices for employees federally, though many states and localities have additional requirements.

As a baseline, employers must compensate all hourly (or “nonexempt”) employees for all time they are “suffered or permitted to work” and engaged in tasks directly related to their job duties. To comply with the FLSA’s recordkeeping rules, employers must accurately maintain employee payroll records...



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