Lots of Californians get their cannabis by ordering online and having it delivered, but delivery got a lot more expensive for cannabis companies last January when regulators decreed delivery drivers must be employees who are paid at least minimum wage, with the usual minimum benefits, and not contractors.

Some small dispensaries ceased deliveries rather than pay drivers more and give them benefits, but Caliva, one of the largest vertically integrated cannabis brands in California, went the other way entirely. “It’s a regulatory requirement but we've really leaned into it,” said Dennis O’Malley, CEO and president of Caliva. “We asked ourselves, given the regulation, how can we make this the best environment for drivers?’’

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