Running a cannabis business in Oklahoma can be a challenge. From staying compliant with changing regulations to managing supply chains, operators have their hands full. But as the industry continues to mature, there is one priority that is becoming harder to ignore: taking care of your team.
Attracting and keeping good people in this competitive market means offering more than just a paycheck. Health coverage, paid time off, and retirement plans are no longer optional. They are a part of building a sustainable business. Here is what you need to know about navigating employee benefits in the Oklahoma cannabis industry.
Why Are Benefits Complicated for Cannabis Businesses?
As you already know, cannabis is still illegal under federal law. Since it is classified as a Schedule I drug under the Controlled Substances Act, laws that support traditional employee benefit structures, like tax deductions under IRS Code Section 280E, do not apply to most cannabis businesses.
That means cannabis operators cannot write off benefit costs like other businesses. This makes it more expensive to offer basic coverage. Plus, many major insurance carriers and financial institutions are reluctant to work with cannabis companies.
However, that does not mean you are out of options. Business owners need to be strategic and work with advisors who understand this space.
What About Health Insurance?
Providing health insurance is one of the most valued benefits for employees. Many Oklahoma cannabis businesses want to offer it. Unfortunately, most big-name carriers will not underwrite policies for cannabis employers. Here is what you can do:
- Explore self-funded plans: These give you more control but require a solid financial cushion.
- Consider health reimbursement arrangements (HRAs): These allow you to reimburse employees for their health expenses and premiums without offering a traditional group plan.
- Offer a health stipend: While considered taxable income, this supports employee wellness and shows your team you care.
None of these options are perfect, but they can improve employee satisfaction.
Can You Offer Retirement Plans?
Retirement benefits are another area where cannabis businesses run into problems. Many national providers still will not offer cannabis 401(k)s. However, some niche retirement plan administrators now cater specifically to the cannabis industry.
Depending on the size of your business, you might also look into simplified IRA options. Even if you are not ready to launch a full retirement plan, partnering with local credit unions can provide support that can go a long way to keeping employees happy.
Providing Paid Time Off and Work-Life Balance
Unlike health and retirement benefits, paid time off (PTO) is within your control. Oklahoma does not mandate paid leave beyond FMLA and other federal standards. You have room to build a policy that works for your business and your people. Some employee benefits may include:
- A generous PTO package with separate sick leave and vacation benefits.
- Policies that support mental health and family needs.
- Flexible scheduling, especially in cultivation and retail roles with long or unconventional hours.
Remember, PTO is an investment in employee morale and long-term retention.
Can You Provide Cannabis-Specific Perks?
While traditional benefits may be tough to implement, cannabis businesses often find other ways to add value. This can include:
- Employee discounts on products as allowed under OMMA rules
- Professional development stipends for compliance, horticulture, or retail training
- Profit-sharing or equity opportunities, especially for long-term team members
These perks can build loyalty and align your team with the company’s success. But you will want to have your legal team look at them to avoid unintended compliance issues.
Learn More About Offering Benefits for Your Cannabis Employees
Navigating employee benefits in the Oklahoma cannabis industry can be difficult. However, it is possible to design a program that retains and attracts new talent. You just want the right cannabis lawyer to help you navigate the federal-state conflicts and regulatory missteps.
At Brune Law Firm, we are proud to support Oklahoma’s cannabis businesses in building strong, sustainable teams. If you are ready to talk about employee benefits or need help untangling the legal side of your HR strategy, contact us to schedule a consultation.