In the last few weeks, we’ve written about some of the MED rule changes that take effect January 1, 2017. These topics have included residual solvent cut off levels, 48 hour rule, and new signage requirements for concentrates. Today we’ll cover the new language regarding employee performance compensation.
In most industries, it is common to incentivize employees based on performance. This type of compensation makes a lot of sense because it’s a great way to reward and incentivize top performers. If your marijuana business is engaged in performance based compensation, be sure to keep the following regulations in mind as we enter 2017:
R 402 O (M 403 G2)
A Retail Marijuana Store shall not compensate its employees using performance-based sales incentives. Performance-based incentives that are not sales-based are acceptable. Examples of performance-based incentives that are not sales-based include recognition for providing quality information to consumers, or the duration of the employee’s employment with the Retail Marijuana Store.
R 501 H (M 501 G)
A Retail Marijuana Cultivation Facility may compensate its employees using performance-based incentives.
R 601 H (M 601 H)
A Retail Marijuana Products Manufacturing Facility may compensate its employees using performance-based incentives.
As you can see, performance-based incentives are authorized for employees that work at MIPs and OPCs. However, there are some very specific requirements for incentives for dispensary employees. Specifically, the incentive cannot be sales-based. Instead, dispensary employee compensation can be dictated by excellent customer service or the employee’s tenure with the organization.
As such, we urge any dispensary that provides performance-based incentives to its employees to take great care in documenting the policies surrounding these incentives. It’s a minor detail, but because it’s a new rule, we expect the MED may investigate these matters moving forward.
We want to take a moment to wish all of our readers a prosperous new year. In 2016 Complia experienced tremendous growth and we look forward to another great year of helping marijuana business maintain the highest level of compliance. Moreover, our industry has a whole as achieved so many amazing milestones in 2016. We are one year closer to a world where all responsible adults can choose to consume cannabis responsibly. We are honored to be a part of this great movement.
Yours in Compliance,