Despite Industry Growth, Most California Cannabis Workers Struggle to Meet Living-Wage Standards

A new report reveals that a majority of cannabis workers in California continue to face financial insecurity, despite earning wages higher than those in comparable retail and delivery sectors. While the industry has expanded rapidly since legalization, the promise of economic opportunity remains unevenly fulfilled for many frontline workers.

The UCLA Labor Center and Cannabis Worker Collab surveyed 1,100 cannabis workers statewide and found that although the median wage is $19.50 per hour—above both the state minimum wage and median earnings in similar industries—many employees still cannot afford basic living expenses. Nearly half of women surveyed reported difficulty affording groceries in the past year. The numbers are even starker for gender-nonconforming workers, with over 80% experiencing food insecurity.

Union Membership Correlates with Higher Wages, Health Coverage, and Workplace Stability

The study, titled “The State of the California Cannabis Workforce,” found that unionized workers consistently fare better on critical economic indicators than their nonunion counterparts. Among surveyed employees, 20% reported being union members. Of those, nearly 70% said they received raises, compared to just 50% of nonunion workers. Union members were also more likely to receive employer-sponsored health insurance—65% versus 41%.

These findings suggest that unionization has a tangible impact on the financial and physical well-being of cannabis workers, providing a pathway to greater job stability in an otherwise volatile sector.

Health and Safety Protections Remain Inadequate as Workers Report Widespread Exploitation

In addition to pay disparities, the report highlights systemic issues with workplace safety, wage theft, and harassment. A significant 85% of respondents believe that health and safety protections in the cannabis industry are insufficient. More than 60% reported experiences of wage theft, such as being forced to work off the clock or being paid late.

Female employees face a disproportionate share of workplace abuse, with over a quarter reporting sexual harassment by supervisors, managers, or customers. Meanwhile, racial and gender-based harassment was common across the board, with more than one-third of all workers experiencing racial intimidation and nearly 30% subjected to homophobic or transphobic comments.

Delivery workers reported high levels of stress, dangerous working conditions, and pressure to make deliveries faster than is safe, often while transporting large amounts of cash and cannabis products.

Union Pushback in Other States Signals a Broader Labor Struggle Across the Cannabis Industry

While unionization efforts in California have shown promise, the broader landscape for cannabis labor rights is more fraught. In New York, cannabis retailer Hybrid NYC is challenging a state licensing rule that requires businesses to engage in union-friendly labor practices. In New Jersey, Green Thumb Industries workers are attempting to decertify their union representation. A federal court in Oregon recently struck down the state’s labor peace agreement requirement, a decision that the state does not plan to contest.

These developments reflect a broader national debate over whether labor protections should be enshrined in cannabis regulation—and who benefits when they are not.

Experts Call for Higher Wages, Formal Training, and Apprenticeships to Strengthen the Workforce

To address these systemic problems, the UCLA Labor Center report outlines several policy recommendations. These include offering tax incentives to cannabis businesses that raise wages or improve employee retention, mandating certified workforce training, and investing in apprenticeship programs.

The goal, according to the report, is to professionalize cannabis labor and support workers in building sustainable, long-term careers. Advocates argue that, without reforms, the cannabis sector risks replicating the same patterns of exploitation that have historically plagued other low-wage industries—even as it generates billions in annual revenue.

As Legal Cannabis Matures, the Industry Must Confront Its Labor Crisis

California’s cannabis industry was built on promises of social equity, economic justice, and community investment. But for many of the workers who make the industry function, those promises remain out of reach. The data suggests that unionization could be a powerful tool for transforming job quality in cannabis—but only if workers are protected from retaliation, and only if employers are held accountable for basic labor standards.

As policymakers and business leaders chart the future of legal cannabis, the report provides a clear message: economic equity will require more than legalization. It will require labor rights.