Do cannabis companies pay their contractors?

Do cannabis companies pay their contractors?


A full 36% of the American workforce was freelance in 2021, corresponding processingis 2021 Freelance Forward reportand they generated $1.3 trillion for the economy, a $100 million increase from 2020.

The report found a shift in hiring, with non-permanent positions accounting for 38% of filled positions, up from 33.8% a year earlier. A skilled workforce is also in demand as 51% of the workforce is occupied by postgraduates.

The changing workforce doesn’t seem to change a well-known freelance anecdote: Clients are often late or don’t pay their contractors.

payment concerns

Freelancers in the cannabis industry, who have limited resources at their disposal, told Benzinga that they are often afraid to speak up and risk consequences beyond missed pay.

Around 20 freelancers told Benzinga about their experiences with late or non-payment. Several offered evidence to support their claims. Most chose not to name the customers, and some also asked for anonymity for themselves. Their reasons for asking for anonymity ranged from fear of a negative industry image to sympathy for the company.

Melissa VitaleFounder of a cannabis and sexual wellbeing PR firm MAVPRsaid customers usually start paying bills on time.

“Over time, especially during holidays or summer, the punctuality of payment can deteriorate,” said Vitale, who also preferred not to name customers, although she provided documentation confirming debts with at least two companies.

Vitale gives customers 14 days to pay invoices and then charges a 10% late fee.

“My CPA and attorney both have bills with two to three days from the bill date to the due date,” she said.

Jessica Moranthe founder of the cannabis PR company known group, has caused several companies to miss invoice dates. She chose not to name any alleged defaulting customers, but said the incidence in cannabis was much higher than in other markets.

“There are companies that have ghosted us that I’m sure will never pay,” Moran said.

Some didn’t speak…

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