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  • As more states across the U.S. legalize cannabis, its presence in the workplace has become a pressing issue for employers. States such as Colorado, Ohio, New York, New Jersey, and many others have legalized cannabis for recreational use, while even more have legalized it for medical purposes. As a business owner, this legalization presents a new set of challenges for maintaining workplace safety and compliance with employment laws.

    The primary concern centers on ensuring your workforce is unimpaired while on the job, especially in industries where safety is paramount, such as transportation, health care, and construction. As you can’t dictate what an employee does off the clock, adapting your business policies to prioritize sober working is crucial.

    Creating these policies is no small task; given the ever-changing legal landscape and the variations in laws across different states, any policy implemented today will likely require future updates and refinements to keep pace with ongoing changes. However, creating internal policies should still be a priority as it can safeguard your business against discrimination or wrongful termination suits if any incidents occur. To help you get started, we’ve compiled essential information to formulate a policy that suits your business needs and ensures compliance with local and federal regulations.

    Understanding Cannabis And Its Effects

    Cannabis or marijuana, primarily known for its psychoactive and medicinal properties, contains several compounds, with tetrahydrocannabinol (THC) and cannabidiol (CBD) being the most significant. Recreational cannabis has THC and CBD; the THC is the primary psychoactive component known for its ability to impair cognitive and motor functions, affecting decision-making, reaction times, and coordination. Separately, medical cannabis is stripped of the THC while keeping the CBD non-psychoactive and highlighted for its potential therapeutic benefits, such as reducing inflammation and anxiety without causing a “high.”

    The effects can vary depending on the individual, method of consumption, potency, and personal tolerance. However, typically, the impairment from smoking cannabis can last several hours, while edibles, which take longer to metabolize, can be delayed and last significantly longer. Understanding these variances is crucial for employers and employees to make informed decisions about consumption during personal time.

    Developing Workplace Policies

    As an employer, it’s essential to balance both the rights of employees who use marijuana legally outside of work and your ability to maintain a safe work environment. This can include implementing policies that prohibit working under the influence of marijuana, even if used off-duty. However, you must check your local and state laws to remain compliant when crafting your drug policies.

    In some states, such as Illinois, where cannabis has been reclassified as a “lawful product,” you’ll need to be mindful not to break the state’s Right to Privacy in the Workplace Act, which prohibits employers from discriminating against employees for off-duty “use of lawful products.”

    Despite the complexities of these differing state laws, you can still develop policies that safeguard your employees and minimize the risk of accidents. Your policies should clearly and fairly outline your stance on cannabis to prevent impairment in the workplace. In addition, it should clearly define the consequences of policy violations to ensure that all team members understand the seriousness of compliance. Having a detailed policy that includes possible repercussions can help safeguard your business in the event of a violation that leads to a termination of employment.

    In addition to developing comprehensive policies, it’s critical to train your team to ensure effective implementation. These policies should also be easily accessible to your staff for review whenever necessary. Including them in an employee handbook is an ideal start, as it’s often the most centralized resource for employees to find company information.

    Testing And Monitoring

    Unlike alcohol, cannabis can stay in an individual’s bloodstream for 30 days and hair for up to 90 days or longer for regular consumers. This means drug tests aren’t always reliable for determining active impairment. In addition, there is also no legally or medically accepted definition of what constitutes impairment for cannabis use, making it more difficult to accurately determine an employee’s non-compliance with your policies.

    However, there are a few signs you can look out for. If you carefully document instances over time, you should be protected from a wrongful termination suit if you end up needing to fire an employee due to non-compliance. These signs include:

    • Poor muscle or limb coordination 
    • Delayed reaction times and abilities 
    • Red eyes
    • Changes in speech or overall behavior
    • Negligent or carelessness while on the clock
    • Panic or anxiety

    While employees may have the right to use marijuana recreationally or medically in states where it is legal, employees are generally not permitted to be impaired at work, especially in safety-sensitive positions. This means business owners are well within their rights to enact policies and monitor employees to protect their teams and businesses.

    Prevention And Employee Assistance

    While implementing policies is a significant step in ensuring a safe work environment, establishing a healthy workplace culture that prioritizes safety is another way to help prevent injuries due to cannabis use. Positive cultures tend to have collaborative mindsets where teams and individuals work together towards common goals. This sense of shared responsibility not only boosts productivity and retention but also creates an environment where employees are motivated to perform at their best. This supportive atmosphere helps ensure that safety is a collective priority and can significantly reduce the risks of workers showing up with impaired functioning.

    In addition, offering employee assistance programs (EAPs) can help employees struggling with substance abuse issues. EAPs can help address employees’ personal issues by providing confidential and professional counseling; some even offer this service via phone, text, and email 24 hours a day, 365 days a year, to ensure your team can get the help they need.

    How GMS Can Help

    Professional employer organizations (PEOs), like GMS, can help with various tasks, including developing your HR policies and procedures and employee training. As a small business owner, you have a lot on your plate, and ensuring compliance with local and federal regulations can be complicated, stressful, and time-consuming.

    Additionally, GMS can help you offer employees the best health care benefits while reducing your overall costs. Traditional health care arrangements are no longer working. Whether your organization lacks an HR department or simply needs a resource to make more informed decisions about the management of benefits, GMS is here to help. GMS changes the approach to increase affordable options and give your employees access to small business health insurance.

    GMS takes the administrative burdens off your plate. Our team of experts ensures compliance, giving you peace of mind while saving you time and money. Contact us today to get started.

  • On November 7th, 2023, Ohio marked a historic moment by becoming the 24th state to legalize adult-use (recreational) cannabis. Recreational marijuana is essentially marijuana used for enjoyment rather than for health benefits (medical). This groundbreaking decision brought to fruition through Issue 2, a citizen-initiated statute, signifies a significant shift in public perception compared to the rejection of a similar effort in 2015. With approximately 57% of voters supporting the move, Issue 2 is set to take effect 30 days after election day, allowing adults aged 21 and older to purchase and possess up to 2.5 ounces of cannabis and grow their own at home.

    The Legislation In Detail

    Issue 2 not only paves the way for personal cannabis use but also establishes the Division of Cannabis Control within the Department of Commerce. This regulatory body will oversee and license commercial cultivation, testing, and cannabis sales. While the full regulatory framework is anticipated to be in place by 2024, the law has already set the groundwork for a 10% tax on marijuana sales. The generated revenue will be directed towards a cannabis social equity and jobs program, contributing to community development.

    Employer Protections Under Issue 2

    Issue 2 provides a framework that safeguards employers’ rights to manage their workplaces in light of the new cannabis laws. These protections mirror those found in the Ohio Medical Marijuana Law and include:

    1. Employer discretion: Employers are not obligated to permit or accommodate employees’ cannabis use, possession, or distribution.
    2. Hiring and employment actions: Employers can refuse to hire or take adverse employment actions against individuals based on cannabis use, possession, or distribution.
    3. Legal immunity: Employees cannot sue employers for refusing to hire or taking adverse actions related to their cannabis use.
    4. Drug policies: Employers are empowered to establish and enforce drug testing policies, drug-free workplace policies, or zero-tolerance drug policies.
    5. Workers’ compensation: The Ohio Bureau of Workers’ Compensation can continue granting rebates or discounts to employers participating in drug-free workplace programs.
    6. Unemployment compensation: If an employee is terminated due to cannabis use violating workplace policies, it’s considered “just cause” under the Unemployment Compensation Law, rendering them ineligible for benefits.
    7. Federal compliance: Issue 2 does not impede federal employment restrictions, including U.S. Department of Transportation regulations.

    Potential Amendments And Future Outlook

    Since Issue 2 is an initiated statute rather than a constitutional amendment, the General Assembly can amend it. Senate President Matt Huffman hinted at potential amendments, addressing concerns about THC limits, tax rates, and other aspects of the statute. The future actions of the General Assembly will undoubtedly shape the ongoing narrative of cannabis legalization in Ohio.

    The Role Of A PEO

    Ohio’s embrace of adult-use cannabis through Issue 2 signifies a progressive step forward, aligning with evolving perspectives on marijuana. As the state enters uncharted territory, navigating the regulatory landscape and ensuring compliance becomes paramount for businesses. Here’s where a professional employer organization (PEO) can play a crucial role for Ohio business owners.

    With HR experts well-versed in the intricacies of employment laws, a PEO like GMS can guide businesses through the nuances of Issue 2, helping them establish and enforce policies, navigate potential legal pitfalls, and stay abreast of any amendments to the statute. In this new era of cannabis legalization, GMS becomes a valuable partner, offering expertise to ensure smooth operations and compliance within the framework of Ohio’s pioneering legislation. Are you interested in learning more? Contact our HR experts today.

  • Earlier this month, Pennsylvania legislators introduced a new bill that aims to legalize recreational marijuana for adults ages 21 and older. This bill, called Senate Bill 846, has several key provisions:

    • Regulating personal possession and use of cannabis: If passed, the bill would establish rules and regulations regarding the possession and use of marijuana for personal, recreational purposes.
    • Creating a Cannabis Regulatory Control Board and Cannabis Business Development Fund: The bill proposes the establishment of a board responsible for overseeing the regulation of the cannabis industry. It would also create a fund to support the growth and development of cannabis-related businesses.
    • Implementing taxes on cannabis: The bill includes provisions for imposing taxes on cannabis products, which would contribute to state revenue.
    • Allowing for expungement of prior marijuana convictions: This bill recognizes the need to address past marijuana-related convictions. If passed, it would provide opportunities for individuals with prior convictions related to marijuana to have their records expunged.

    Furthermore, the bill seeks to change the existing medical marijuana law in Pennsylvania. This includes offering employment protections to workers who are medical marijuana cardholders. This means that individuals who qualify for medical marijuana use would have certain rights and safeguards in the workplace.

    It’s important to note that Pennsylvania has already had a medical marijuana program in place since 2016. Recently, an appellate court ruled that the state’s medical marijuana law does not prevent insurers and employers from reimbursing injured workers for the cost of medical marijuana in workers’ compensation claims. This ruling helps ensure that individuals who require medical marijuana for their injuries can potentially receive financial assistance through their workers’ compensation claims.

    Overall, this bill represents a significant step towards legalizing recreational marijuana for adults in Pennsylvania while also addressing issues related to the medical marijuana program and employment protections for cardholders.

    Are You A Business Owner In Pennsylvania?

    If the legalization of recreational marijuana becomes law in Pennsylvania, small business owners may face various challenges and changes in the workplace. In this case, a professional employer organization (PEO) like Group Management Services (GMS) can provide valuable assistance and support to small businesses.

    Here’s how we can help:

    • Policy development: We help small business owners navigate the complexities of the new marijuana laws by developing comprehensive drug and alcohol policies that comply with the legal requirements. Our HR experts help you create clear guidelines for employees regarding marijuana usage, possession, and impairment in the workplace.
    • Compliance assistance: We stay up to date with ever-changing employment laws and regulations and help business owners understand and comply with the specific requirements of the legalized marijuana law in Pennsylvania. This ensures that businesses operate within legal boundaries and minimizes the risk of penalties or legal issues.
    • Employee education and training: With the introduction of recreational marijuana, it’s crucial for small business owners to educate their employees about the updated policies and regulations. GMS provides educational resources through our learning management system (LMS). Employees gain access to learning modules where employees can understand their rights, responsibilities, and the potential impact of marijuana usage on their work environment.
    • HR support and risk management: Small business owners may encounter HR challenges related to marijuana usage, workplace safety, and employee performance. GMS offers HR support, guidance, and risk management strategies to address these issues effectively. We assist in developing protocols for dealing with impaired employees, implementing drug testing procedures, and managing any potential conflicts that may arise.

    GMS’ HR Account Manager, Elizabeth Schwarzkopf, PHR, added, “Implementing policies and practices conducive to the new legislation is key. One employer concern with recreational cannabis use is what to do if an employee is under the influence at work. GMS can help guide an employer on how to address these situations. Employers requiring pre-employment drug screening can partner with GMS to review their current setup and customize their process for the new legislation.”

    When you partner with GMS, your HR functions are all under one roof. You know exactly who to call when you have a question or need support for your business. We’re just one phone call away. Contact us today to learn how we can help your business thrive.

  • The California legislature passed Assembly Bill (AB) 2188, which prohibits employers from discriminating against a person in hiring, termination, or any term or condition of employment based on the individual’s use of cannabis off the job and away from the workplace. This bill passed the Senate in late August, gave a concurrence vote in the Assembly, and was finally approved by California Governor Gavin Newsom on September 18th. Governor Newsom signed this bill to strengthen California’s cannabis law, expand the legal cannabis market, and redress the harms of cannabis prohibition. This law will take effect in January 2024.

    Marijuana Laws In California 

    California was the first state to allow medicinal cannabis use when voters passed the Compassionate Use Act in 1996. Medical marijuana refers to using marijuana to treat certain medical conditions, including:

    • Easing pain
    • Controlling nausea and vomiting 
    • Making a person feel like eating
    • Relieving symptoms in people who have multiple sclerosis, Crohn’s disease, inflammatory bowel disease, and epilepsy

    Today, cannabis is legal in California for medicinal and adult recreational use. Recreational marijuana refers to marijuana that is grown and sold recreationally to adults over the age of 21. The cannabis industry is strictly regulated to ensure:

    • Businesses operate safely
    • Products are contaminant-free and labeled to inform purchasers
    • Cannabis is kept away from children

    Although California has made significant progress since the legalization of cannabis, local opposition, rigid bureaucracy, and federal prohibition continue to pose challenges to the industry and consumers.

    Understanding AB 2188

    Bill AB 2188 prevents employers from discriminating against an applicant or employee who fails a drug test that detects non-psychoactive cannabis metabolites in their urine, blood, hair, or bodily fluids. It’s vital for employers to understand the new law and what the test is evaluating at a high level. Tests that are currently available don’t accurately indicate a level of intoxication from marijuana as they would for alcohol. It can be challenging for employers to determine whether someone is impaired and when the substance might have been consumed when a test returns positive.

    As an employer, you can begin implementing practices under the new law, including:

    • Ensuring you have updated policies for drug testing
    • Focusing on the person’s conduct while performing their job duties to determine if they have reasonable suspicion
    • Using the proper drug tests

    How GMS Comes Into Play

    With ever-changing rules and regulations, it’s vital as the business owner to stay up to date with changes. When you partner with GMS, our experts ensure you stay on top of the evolving legislation, so your business remains compliant with state laws. Although marijuana has been legal in California, implementing new rules and policies in the workplace can still be challenging. We work with you to create a simpler, safer, and stronger workplace for you and your employees. Contact us today to start your partnership with GMS.

  • The New Jersey Cannabis Regulatory Commission has issued guidance for workplaces, as an initial step toward formulating and approving standards for Workplace Impairment Recognition Expert certifications. The Commission establishes and enforces rules and regulations governing the licensing, cultivation, testing, selling, and purchasing of cannabis in New Jersey. According to the New Jersey Cannabis Regulatory Commission, “employees cannot be acted against solely due to the presence of cannabis in their body. However, employers have the right to drug test on reasonable suspicion of impairment.”

    Implementing Drug Tests In The Workplace

    While drug tests are still evolving and becoming more accurate, there are ways to enforce drug tests within the workplace. The beginning of recreational marijuana sales in New Jersey started earlier this year. However, before April, New Jersey only allowed cannabis for medical reasons. Employers should establish evidence-based protocols to document behaviors and physical signs of impairment. Then, if there is a reasonable cause or suspicion, utilizing a drug test to verify would be the next step.

    The new guidelines are intended as the first step toward regulations for certification standards for workplace impairment recognition experts. For the time being, employers can use their established protocols to maintain a drug-free workplace policy.

    Guidelines For Employers As States Legalize Marijuana 

    Employers face complex state laws legalizing marijuana along with conflicting federal laws when developing and implementing workplace drug policies. As more and more states legalize marijuana, a business owner needs to establish drug policies within the workplace while staying compliant. When you partner with GMS, our team helps you create an employee handbook that provides your employees with the policies and guidelines they need to adhere to. In addition, our online HR portal makes it easy for you to measure, track, and review documents. Contact us today to get started. 

  • Ohio and Republican legislative leaders have reached a compromise for the legalization of marijuana in Ohio vote for next year’s ballot, 2023. The Ohio Marijuana Legalization Initiative (2023) would enact a state law to legalize the cultivation, processing, sale, purchase, possession, home growth, and use of recreational marijuana for adults 21 years of age and older. In addition, the law would impose a 10% tax on adult-use cannabis sales and direct revenue to fund “a cannabis social equity and jobs program” to offer “financial assistance and license application support to individuals most directly and adversely affected by the enforcement of marijuana laws.”

    The legalization process has been quite a challenge for advocates. They’ve needed to turn in a first batch of at least 132,887 valid signatures to the state to initiate a process. Following that, lawmakers would have four months to decide whether to enact the proposal. Unfortunately, the legislature declined to move on to reform for November 2022 ballots.

    To bring the issue before voters in November 2023, advocates must resubmit their petitions on January 3rd, 2023.

    Stay In The ‘Know’ By Partnering With GMS

    Our experts at GMS work with you to create a simpler, safer, and stronger workplace for you and your employees. While the cannabis industry is making its presence in the state of Ohio, GMS will keep you up-to-date on any changes that your business should know in order to stay compliant with state laws. To learn how GMS can benefit your business, contact us today. 

  • The U.S. House of Representatives has approved a federal bill that would decriminalize cannabis use. However, this bill’s fate in the Senate is unclear right now. If this bill is signed into law, the act would resolve any conflict between federal and state law that causes any confusion for employers. State laws associated with the use of medical and recreational marijuana still vary from state to state.

    The Marijuana Opportunity Reinvestment and Expungement (MORE) Act, H.R. 3617, passed the House in a 220-204 vote on April 1. All but two Democrats voted for the measure and all but three Republicans voted against it.

    The Senate is currently split 50-50 between Democrats and Republicans. When the Senate is divided, Vice President Kamala Harris serves as the tie-breaking vote. With that said, the bill would need a total of 60 Senate votes to break a filibuster.

    States Still Regulate Cannabis

    Since marijuana is still listed as a Schedule I drug under the federal Controlled Substances Act, marijuana is still considered high for abuse and serves no medical value. The MORE Act would remove marijuana and criminal sanctions, and provide some relief for previous convictions.

    For the workplace, states would continue to regulate cannabis and would not be required to legalize its use. Thirty-seven states have currently approved medical marijuana use with 18 of those states also approving recreational use. Employers are still able to create policies that prohibit any cannabis use by their employees.  

    How To Adapt To Changing Attitudes

    Cannabis laws will continue to expand at the state level regardless of whether the federal government approves this bill. About 68% of Americans believe that marijuana should be legalized. 31% of Americans feel that marijuana should be legal only for medical use with 8% saying it should not be legal at all. 

    There’s an increasing number of people in the workplace who have failed drug tests. In 2021, positive drug tests reached the highest level in two decades. In light of COVID-19, many employers are struggling with staffing shortages, so testing for marijuana is no longer a main priority for companies. Despite these unprecedented times, employers need to focus on training managers and supervisors on proper ways to approach employees when they might be working under the influence. With that being said, any employee that goes through the drug screening process must be thoroughly documented.  

    Take A Proactive Approach To These Ongoing Changes

    As the cannabis industry continues to evolve, partnering with GMS will benefit your business. The experts at GMS work with you to make your company simpler, safer, and stronger. GMS will keep you up-to-date on any changes whether industry-specific or government-related. Contact us today to learn how GMS can help make your job easier. 

  • While many businesses have struggled with staffing issues during the pandemic, cannabis companies aren’t dealing with growth issues. Employment in the cannabis industry grew by 32% in 2020, and that expansion hasn’t slowed down since.

    Whether you run a dispensary, sell cannabis-infused products, or play another role in the legal marijuana industry, business prospects are booming. However, that same level of growth does present a new challenge – navigating human resources. Some business owners may try to tackle these administrative burdens themselves, but that commitment can pose problems.

    “Some small businesses think this is something they can tackle on their own, but the cannabis industry really understands the importance of hiring an HR professional or partnering with an organization that handles HR,” says Stacey Larotonda, vice president of client services at GMS.

    There are several administrative responsibilities that come with a growing company, especially one that’s regulated as heavily as the cannabis industry. Let’s break down some key areas where the cannabis industry can benefit from professional HR assistance.

    Compliance

    It’s no secret that the cannabis industry deals with heavy regulations. However, newer businesses in the cannabis industry may not be fully prepared to deal with all the responsibilities.

    “We have found that most of the cannabis businesses are in the infancy stage when they join with GMS,” Larotonda says. “Because of this, they don’t have much from an HR compliancy standpoint.”

    One struggle is dealing with the different laws that impact the cannabis industry. These companies typically deal with different regulations for licensing, banking, benefits, safety, hiring, and more. An HR partner can help business owners keep up with the rapidly changing regulatory landscape to help them stay one step ahead.

    Of course, compliance also extends beyond cannabis-specific rules. There are plenty of standard business compliance issues to address as well. Proper HR management can work with businesses to stay compliant through the following actions:

    Payroll

    Banking has been and will continue to be tricky for cannabis businesses. While the cannabis industry can operate legally within state lines, federal banks and other forms of financing aren’t always available. Combined with the aforementioned compliance concerns, payroll administration is a difficult process for cannabis companies.

    By outsourcing payroll to an HR partner, cannabis companies can simplify their payroll process and ensure that they pay their employees legally. For example, GMS utilizes online payroll software to help automate payroll processing around a business’ particular needs. That process means that cannabis businesses can streamline payroll tax deductions, timekeeping, and other time-consuming tasks in a quick, legal manner.

    Hiring

    In a rapidly growing industry, cannabis businesses have to get out and find the right talent. The problem is that hiring employees isn’t necessarily easy or cheap. It can be difficult to find applicants with good past experience or formal training in dealing with cannabis. Meanwhile, the average cost of a bad hire amounts to roughly 30% of that employee’s first-year potential earnings.

    A good HR team can help guide cannabis companies during the hiring process and take on the administrative burdens associated with this process. Those needs include managing the following legwork to streamline the recruiting process and find top talent for your industry.

    • Job ads and job descriptions
    • Offer letters
    • Background checks
    • Interview assistance
    • Applicant tracking systems
    • Payroll forms

    Employee Retention

    Once you hire the right people, it’s very important to retain top employees. Simply put, losing good talent is expensive. The cost of employee turnover can range as high as three-quarters of that employee’s salary. You also need people to operate your business, and constant turnover only leads to a constant, expensive hiring cycle. As such, HR plays a pivotal role in keeping employees in your company.

    “Invest in your people, whether that is HR, operations, sales, etc.,” Larotonda says. “Make your company a place people don’t want to leave!”

    There are several ways that HR can improve employee retention. These measures range from setting up employees for immediate success and giving them a reason to make your company a place to stay.

    Ongoing Assistance

    No business owner should be asked to oversee all of their HR functions alone, much less one in a rapidly-growing industry. With the right HR partner, you don’t have to know everything about administrative functions.

    As HR professionals, the experts at GMS work with you to make your company simpler, safer, and stronger. Our job is to give your business access to HR tools and resources that can help your business grow and succeed. When you have questions, we can provide the answers you need. In turn, you can focus your time on growth instead of time-consuming administrative tasks.

    Ready to nail down your HR process and set your business up for happy employees and future growth? Contact us now about how GMS Connect can help solve your business’ HR challenges.