Employer Audits for Cannabis Businesses

Audits are not typically achieved with open arms. Far more frequently than not, these invasive physical exercises seem awkward and even dangerous for a cannabis business enterprise. But that should really not be the scenario! In truth, as in other industries, a preemptive employment methods audit can be a cannabis business’s greatest friend.

cannabis employment audit
Audits are not constantly a bad detail.

What is an employment methods audit?  An employment methods audit is simply scrutiny of a company’s employment methods by an outside skilled. A profitable audit will examine a company’s methods for legal compliance, provide recommendations to protect the organization from litigation, and help in the development of a robust human sources section. An audit is a fantastic concept for any cannabis business enterprise, but it can be in particular useful for commence-ups. A fantastic audit will identify weak factors in the employer/worker partnership and resolve difficulties before they arise—potentially conserving a cannabis business enterprise the time, expense and the problems of litigation.

Wages and Hours

1 of the most significant liabilities companies can encounter in compliance with wage and hour guidelines. We have not too long ago highlighted some of the exposures employer can encounter for failing to comply with wage and hour guidelines (here, here, and here). A wage and hour audit will examine your payroll methods to ensure employees are paid at the very least minimum wage, time beyond regulation is right, and highest work 7 days hrs are noticed. A fantastic audit will also figure out if employees are correctly categorized as exempt from wage and hour requirements, or whether changes are required.

Pay Fairness

Quite a few states are passing equal pay back laws—including Oregon and Washington. Equivalent pay back guidelines have to have companies to pay back in the same way located employees the same price. An equal pay back audit will examine worker job obligations and tasks, figure out if their pay back is equal, and if the pay back is not equal, provide an employer with a advice to comply with the state’s equal pay back legislation. Some states, like Oregon, specifically provide incentives to companies for completing a pay back equity audit.

Discrimination, Harassment, and Retaliation

Cannabis companies will need to have significant, designated methods in position to address discrimination, harassment, and retaliation in the office. In truth, a fantastic schooling or criticism dealing with procedure could lessen discrimination and harassment all alongside one another. An audit will examine criticism techniques, investigation techniques and self-discipline techniques, to ensure employer legal responsibility is minimalized. A perfectly executed audit can also provide proposed fixes and trainings to aid employees comprehend the seriousness of harassment and retaliation.

Cannabis Particular Issues

It may perhaps look serious, but a cannabis organization operates the possibility of getting rid of its license if the functions of its employees violate a condition cannabis rule or statute. An audit can examine the methods your organization has in position to aid employees comply with the condition cannabis regulations and provide a program for worker compliance.

Leave Techniques

Quite a few states have to have shielded sick depart. In addition to shielded sick depart, several corporations are matter to the Family Clinical Leave Act or the condition equivalent. An employer audit can examine whether employees are presented shielded sick depart in accordance with the condition sick depart guidelines, and provide shielded below FMLA and the condition equivalent.

Personnel Handbook Evaluation

Personnel handbooks are so very vital to cannabis corporations. They should really be the initial position equally the employer and the worker glance for concerns relating to depart, added benefits, pay back schedules, anticipations and disciplinary methods, among the other points. A right audit will examine your worker handbook and figure out if the handbook complies with federal and regional guidelines and whether it needs updating (presented the swift evolution of equally employment and cannabis guidelines, we can practically promise you that it does). No matter of whether you do a whole audit, an worker handbook should really be reviewed by an skilled at the very least as soon as every single two many years to ensure it still complies with regional guidelines.

Audits are not “one sizing fits all” and can be tailor-made to meet up with your cannabis corporations needs.  Audits can save companies a whole lot of revenue in the lengthy operate by correcting difficulties and instilling methods that can stop employment related litigation before it commences.

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