Doing business in Canada? You need to know about this.


Doing business in Canada? You need to know about this.

Does your company do business in Canada?

You should know about a sweeping law change that could impact the day-to-day process of doing business with our neighbor to the north.

Thanks to legislation that just cleared its last hurdle, recreational marijuana will be legal in Canada this fall. This law makes Canada one of the biggest governments enacting broad legalization; experts say other countries may now look to their law as a model. Medical marijuana has been legal in Canada since 2001.

What do businesses with connections in Canada need to know about the new law?

Canada’s nation-wide law is similar to a federal law in the United States. It will apply to all provinces and territories. It mirrors what certain states within the United States have already approved.

Under this new law, Canadians will now be able to purchase non-medical marijuana from authorized dealers and possess as much as 1.1 ounces of the drug. Legalization isn’t happening until October in order to give Canada’s 10 provinces and three territories time to sort out all the details involved in regulating the distribution system, as well as determining a legal age for buyers.

All of this is in stark contrast to what’s happening over here in the United States with conflicts between the state and federal laws. Here, federal law still bans marijuana use—medical or otherwise.

So, how should companies with Canadian connections handle this change?

Nicolas Dufour, ClearStar Executive Vice President and General Counsel, weighed in, saying companies shouldn’t wait to act.

 “Employers maintaining operations in Canada may want to review their drug test policies to ensure they are compliant under the newly enacted Canadian federal law,” he said.

The bottom line is this: no matter where you do business, requirements for employers will never be static. But with a partner like ClearStar you won’t get left behind when it comes to compliance. Call us today to get started.


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