Cannabis Businesses Face New Compliance Pressures from OSHA: A Closer Look at the Regulatory Landscape Reshaping Workplace Safety
As the cannabis industry matures into a more formalized and regulated sector of the U.S. economy, it is beginning to face heightened scrutiny not only from state agencies but also from federal regulators. One such regulator—the Occupational Safety and Health Administration (OSHA)—has been increasing its presence in cannabis workplaces. With new rulemakings in the pipeline and enforcement initiatives ramping up, cannabis operators now face new and evolving compliance pressures from a federal agency historically peripheral to this industry.
This regulatory shift signals a major turning point for how cannabis companies must think about workplace safety, labor rights, and operational compliance.
OSHA’s Expanding Focus on the Cannabis Industry
Although cannabis remains federally illegal under the Controlled Substances Act, OSHA is still authorized to enforce workplace safety regulations in cannabis businesses because these enterprises are subject to general labor laws. Regardless of the federal stance on cannabis, OSHA maintains jurisdiction over worker health and safety in all legal businesses—including those operating under state-issued cannabis licenses.
Over the past few years, as more states have legalized medical and adult-use cannabis, OSHA has become increasingly active in conducting inspections, issuing citations, and introducing broader workplace safety initiatives that encompass cannabis cultivators, manufacturers, retailers, and distributors.
In 2023 and 2024, OSHA’s regulatory activity spiked. Now in 2025, the agency is finalizing or proposing rule changes that directly affect sectors where cannabis is produced and processed, including agriculture, manufacturing, chemical handling, and warehouse operations.
Key OSHA Rulemakings Impacting Cannabis Operators
Several recent and forthcoming OSHA regulations are poised to significantly impact how cannabis businesses structure their operations and train their employees. These include:
1. Heat Illness Prevention Standard
One of OSHA’s most significant proposed rules is the Heat Illness Prevention Standard, which targets workers exposed to high temperatures—common in cannabis cultivation and greenhouse operations. The rule would require employers to monitor heat index levels, ensure proper hydration and shade breaks, and develop written prevention plans.
For cannabis companies operating in states like California, Arizona, or Nevada—where cultivation frequently occurs outdoors or in high-heat greenhouses—this rule could require infrastructure upgrades and procedural changes.
2. Workplace Violence in Healthcare and Social Services
While not cannabis-specific, OSHA’s focus on workplace violence protections in healthcare and retail settings may affect cannabis dispensaries, especially those that operate in high-risk areas or provide medical cannabis to vulnerable populations.
Dispensary operators may be required to assess risks, implement mitigation strategies, and provide employee training to comply with these guidelines if OSHA expands this rule to include cannabis retailers.
3. Hazard Communication Standard Updates
Cannabis processing often involves the use of chemical agents—whether in extraction labs using solvents like butane or CO₂, or in nutrient and pesticide management during cultivation. OSHA’s updates to its Hazard Communication Standard aim to improve labeling, data sheet access, and training related to chemical hazards.
This rule will require cannabis manufacturers and processors to revisit their labeling and documentation practices, provide updated training, and ensure chemical exposures are clearly communicated to workers.
Enforcement Activity and Citations on the Rise
As OSHA formalizes its attention to the cannabis industry, enforcement actions are increasing. In recent years, cannabis businesses have been cited for violations such as:
- Inadequate personal protective equipment (PPE) for employees handling hazardous materials
- Unsafe electrical systems in processing facilities
- Poor ventilation in extraction labs
- Failure to properly train staff on equipment use and emergency procedures
- Exposure to mold and allergens in cultivation facilities
While OSHA fines may be modest compared to other federal penalties, the reputational damage and operational disruption from an inspection can be significant. Noncompliance may also trigger additional scrutiny from other agencies, including state labor departments and fire marshals.
State vs. Federal Jurisdiction: A Murky Path Forward
Adding to the complexity is the patchwork of state and federal regulatory overlaps. In states with their own OSHA-approved workplace safety plans—such as California, Oregon, and Washington—state agencies may take the lead in inspecting cannabis businesses. However, these plans must meet or exceed federal standards, and OSHA can still intervene in certain cases.
For cannabis employers, this dual system often means navigating two layers of regulation—each with its own requirements and enforcement styles.
For example, Cal/OSHA already enforces robust safety standards for cannabis operations, including heat illness prevention and pesticide safety. But if a federal rule is more stringent, California businesses may soon be expected to adopt those measures as well.
Compliance Best Practices for Cannabis Employers
With this increased regulatory attention, cannabis businesses must take proactive steps to avoid citations and create safer work environments. Here are some key strategies:
- Conduct Comprehensive Risk Assessments
Evaluate potential hazards across all areas of operation, from cultivation to customer service. Document the findings and implement mitigation plans.
- Develop and Maintain a Written Safety Plan
A detailed Injury and Illness Prevention Plan (IIPP) should outline responsibilities, training schedules, emergency procedures, and compliance protocols.
- Train Employees Regularly
Ensure that all workers understand safety procedures, hazard communication standards, equipment usage protocols, and emergency response steps.
- Monitor Regulatory Updates
Stay up to date with changes in OSHA regulations, especially proposed rules in the Federal Register, and adjust internal policies accordingly.
- Engage Qualified Safety Consultants
For businesses that lack in-house compliance expertise, external consultants can help assess risk, train staff, and prepare for inspections.
Industry Concerns: Is OSHA Overreaching?
While most cannabis employers agree on the importance of workplace safety, some industry advocates argue that OSHA’s approach lacks clarity and consistency for cannabis operators.
Given that cannabis remains federally illegal, there’s a concern that OSHA’s involvement could lead to conflicts with other federal agencies—or even reinforce perceptions of illegitimacy in the industry. Others worry that new rules could disproportionately burden smaller businesses with limited compliance budgets.
Still, many see OSHA’s increased presence as a sign of normalization and legitimacy. “If cannabis is going to be treated like any other regulated industry, then workplace safety has to be part of that equation,” says one industry compliance officer.
A New Compliance Era
As OSHA continues to expand its regulatory reach into the cannabis sector, the era of informal operations is drawing to a close. Today’s cannabis businesses—especially those seeking long-term success and scalability—must embrace rigorous workplace standards and regulatory readiness.
The evolving landscape will likely require higher investments in training, documentation, and operational infrastructure. But for those who rise to the challenge, the reward is not just compliance—it’s safety, efficiency, and the trust of regulators, employees, and the public alike.
The cannabis industry can no longer afford to treat workplace safety as an afterthought. With OSHA ramping up its attention, and more rulemakings on the way, the spotlight on compliance is brighter than ever. Cannabis operators should consider this both a warning and an opportunity—to raise the bar and position their businesses as responsible players in a maturing, highly scrutinized industry.
