The Grass Isn’t Always Greener: California Workers Push for Fair Wages

California’s cannabis industry, once celebrated for its growth and innovation, now faces growing pains. From delivery drivers to farmers, workers across the supply chain are calling for better wages, consistent hours, and safer conditions. A recent strike vote by more than 500 delivery drivers highlights deeper challenges in an industry grappling with high taxes, overregulation, and fierce competition.

With union negotiations stalled and economic pressures mounting, workers are pushing for fair treatment. These struggles mirror broader issues in California’s cannabis sector, where price compression, supply chain disruptions, and company closures leave businesses and employees in precarious positions.

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The Current State of Wages in California

California’s minimum wage, now $16 per hour, is among the highest in the nation. Some industries and locations go even further: fast-food workers now earn $20 per hour, and healthcare employees make between $18 and $23 per hour, with plans for increases. In cities like Emeryville and West Hollywood, minimum wages exceed $19 per hour. Yet, with the cost of living requiring $27 per hour for basic needs, many workers feel left behind.
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The cannabis industry in California offers a range of roles with varying pay rates, reflecting the responsibilities and skills required in each position. For entry-level positions like budtenders, wages range from $19 to $26 per hour, including base pay and additional compensation of $3 per hour from incentives. Cannabis delivery drivers, a key role in the dispensary ecosystem, earn an average of $19.06 per hour, slightly above the national average.

For those in management or specialized roles, wages increase significantly. Dispensary managers earn an average of $30.24 per hour, while Quality Assurance Managers earn between $18.42 and $22.66, with an average of $20.43 per hour. Inventory Managers, such as those at STIIIZY, report hourly wages of approximately $21.13, reflecting the organizational demands of their role.

In cultivation and processing, entry-level workers in greenhouse and post-harvest roles earn around $17 per hour. These positions involve physical labor, such as trimming, drying, and packaging cannabis, and require strong attention to detail and adherence to safety standards.

Despite the wide range of roles and responsibilities in California's cannabis industry, wages often fail to meet the high cost of living in the state. While some positions, like dispensary management, offer competitive pay, many entry-level roles hover around $17 to $20 per hour — far below the $27 per hour needed to cover basic expenses. This gap leaves many workers struggling to make ends meet despite working in a growing and profitable industry. For the cannabis sector to truly thrive, it must address this disparity, ensuring that those who power its success can afford to live and work comfortably in California.

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How Fast Food Wages Are Sparking Competition in the Job Market

California’s fast-food minimum wage of $20 per hour, effective April 2024, adds pressure on cannabis businesses to remain competitive. Fast-food companies like Starbucks and McDonald’s already offer healthcare, tuition assistance, and stable schedules, making these roles appealing. For cannabis workers earning similar wages but with fewer benefits, fast food may seem like a better deal. Without changes, the cannabis industry risks losing talent unless it adapts with higher pay, better benefits, and improved working conditions.
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Creative Ways for California Dispensaries to Offer Competitive Compensation

Here are several strategies dispensaries can use to offer higher compensation and attract talent without significantly impacting their tight profit margins:

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1. Bonuses and Sales Incentives

‍Offering performance-based bonuses and sales incentives can motivate employees to go the extra mile, directly linking their efforts to increased income. For example, budtenders could earn bonuses for hitting monthly sales targets, upselling premium products, or receiving positive customer reviews. This not only rewards top performers but also drives overall business growth.

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2. Increased Paid Time Off (PTO)

‍Enhanced PTO policies are an appealing benefit for employees seeking work-life balance. Dispensaries can offer additional vacation days, birthday PTO, or mental health days as part of their standard package. This low-cost perk can improve job satisfaction and reduce burnout, leading to higher employee retention.

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3. Healthcare and 401(k) Matching

‍Providing basic healthcare coverage and a modest 401(k) matching program makes dispensary roles more competitive with larger industries like fast food or retail. Even small contributions toward retirement savings or access to telemedicine services can make a big difference to employees without overly burdening your dispensary's budget.

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4. Clear Career Paths with Salary Increases‍

Employees are more likely to stay when they see a clear path to grow within the company. Dispensaries can implement structured advancement plans that outline promotions, salary increases, and additional responsibilities. For example, a budtender could progress to Assistant Manager and eventually Dispensary Manager, with defined pay raises at each level.

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5. Career Milestone Bonuses‍

Rewarding employees for their loyalty with milestone bonuses is a cost-effective way to show appreciation. For example, a one-time cash bonus after a year of service or an additional week of PTO after three years can incentivize long-term commitment. These rewards also help employees feel valued and reduce turnover costs.

By implementing these strategies, dispensaries can create an attractive employment package that rivals other industries without significantly impacting their bottom line.
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Conclusion: Investing in the Future of California’s Cannabis Workforce

California’s cannabis industry stands at a crossroads, navigating the challenges of a competitive job market, rising costs, and growing worker expectations. While the industry faces unique hurdles, such as regulatory burdens and tight profit margins, the path forward lies in creating a workplace environment that values and rewards employees. Offering creative compensation strategies like bonuses, expanded benefits, and clear career advancement opportunities can help dispensaries stay competitive without breaking the bank. As fast-food wages rise and other industries adapt, the cannabis sector must innovate not only in its products but also in its approach to supporting and retaining its workforce. By prioritizing employee satisfaction and engagement, California’s cannabis businesses can build a sustainable future where both workers and companies thrive.

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Make People Management Easier with KayaPush

Managing people doesn’t have to be a drain on your time and resources. KayaPush simplifies HR and payroll tasks, giving dispensary managers the freedom to focus on what truly matters — fostering employee growth and building strong relationships. By streamlining operations with smarter scheduling, reduced overtime, and fewer compliance fines, dispensaries can save time and resources. These savings can then be reinvested into better benefits for employees, creating a workplace that attracts and retains top talent. With KayaPush, you can ensure your dispensary runs smoothly while keeping your team engaged and motivated. Book a demo today to get started!

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