As a reminder for all cannabis industry employers in Minnesota, on May 24, 2025, Governor Tim Walz signed Senate File 2370 into law, introducing major updates to Minnesota’s cannabis regulations.

The Omnibus Cannabis Policy law establishes new licensing rules, product standards, and workplace requirements as the state prepares for recreational cannabis sales.

Employer Highlights

• Drug Testing: No penalties for off-duty cannabis use unless impaired at work.
• Labor Relations: Labor peace agreements required for cannabis and hemp businesses.
• Hiring: Background checks and disqualification rules apply.
• Transport & Delivery: Secure protocols and insurance required.
• Notice & Retaliation: Written notice before discipline; retaliation prohibited.
• Training: Employees handling cannabis or hemp products must follow security and safety standards.

Summary of Omnibus:

1. Purpose and Scope

• Creates the Office of Cannabis Management (OCM) to oversee cannabis programs and Tribal relations.

• Updates rules for medical cannabis, adult-use cannabis, and hemp edibles.

• Adds new license categories and compliance requirements for businesses.

2. Licensing and Labor Requirements

• New licenses include cannabis retailers, cultivators, manufacturers, testing facilities, delivery services, and hemp edible wholesalers.

• Fees range from $250 to $30,000 depending on license type.

• Labor Peace Agreements are mandatory for cannabis and hemp businesses and must prohibit strikes and work stoppages.
  • Employer Note: Maintaining these agreements is a condition for licensure and renewal.

3. Employment Protections

• Employers cannot discriminate against registered medical cannabis patients or penalize positive cannabis tests unless the employee is impaired at work.

• Written notice (14 days) is required before adverse action, citing federal law or licensing risk.

• Retaliation is prohibited; violations may result in civil penalties and attorney fees.
  • Employer Note: Update drug testing policies to focus on impairment, not off-duty use.

4. Hiring and Background Checks

• Mandatory fingerprinting and criminal history checks for cannabis workers.
• Disqualifying felonies include trafficking, fraud, embezzlement, and certain drug crimes.
  • Employer Note: Implement strict pre-employment screening.

5. Transportation and Delivery

• Removes two-employee and randomized route requirements for cannabis transport.

• Delivery endorsements allowed for hemp edible retailers; independent contractors permitted.
  • Employer Note: Ensure secure handling, insurance coverage, and contractor compliance.

6. Workplace Safety and Compliance

• Cannabis businesses must meet OSHA standards and maintain sanitary premises.

• Willful labor violations within five years can disqualify license applicants.
  • Employer Note: Maintain strong safety programs and labor compliance.

For additional information:

• Minnesota SF 2370 – Omnibus Bill
• Minnesota Legislative Change – Cannabis SF 2370

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