What happened?

As a reminder to all employers Congress enacted H.R. 5371 on November 12, 2025 to reopen the government. Within Division B (Agriculture & FDA), Section 781 changes the federal definition of “hemp” and sets strict limits on consumable hemp products. These changes take effect on November 12, 2026, with related FDA guidance due within 90 days of enactment.

• The appropriations ‘minibus’ ending the shutdown was enacted on November 12, 2025.

• Section 781 (Division B) redefines “hemp”, shifts testing to “total THC”, caps finished products at less than or equal to 0.4 mg total THC per container and excludes synthetic/converted cannabinoids.

• FDA is directed to publish lists and clarification guidance on naturally occurring cannabinoids, THC‑class cannabinoids, “similar‑effect” cannabinoids, and added specificity on “container” within 90 days.

• Changes apply on November 12, 2026. Until then, current rules remain, but planning should begin immediately.

Overview

Why this matters:

• Many products that employees buy today (gummies, vapes, beverages, full‑spectrum CBD) will likely become illegal under federal law after November 12, 2026.

• Employers in retail, wellness, hospitality, and e‑commerce may need to update policies, supply chains, and contracts.

• State programs that have allowed intoxicating hemp will face federal preemption risks, increasing multi‑state compliance complexity.

Action Steps for Compliance

• Update workplace policies (drug & alcohol, code of conduct, and expense reimbursement) to reflect the federal effective date and clarify that state legality may not equal federal legality.

• Audit products and vendors (if you sell/stock hemp items) and verify total THC per container and identify converted/synthetic cannabinoids for phase‑out.

• Plan communications for employees and customers, including simple guidance on what changes on November 12, 2026, and where questions go.

• Review contracts (leases, supply, distribution, financing) for change‑in‑law provisions and inventory strategies.

• Monitor FDA’s 90‑day lists and be ready to adjust labels, COAs, packaging to the clarified “container” definition.

• Engage regulators/associations to advocate for workable standards (age‑gating, testing, packaging) rather than outright prohibition.

Additional Information

• The minibus fully funded Agriculture & FDA, Legislative Branch, and Military Construction–VA for FY 2026; a continuing resolution funds other agencies through January 30, 2026.

• Summaries emphasize curbing sales of intoxicating hemp (e.g., Delta‑8) via certain retail channels

What is “total THC”? For purposes of Section 781, ‘total THC” means less than or equal to 0.3% on a dry weight basis after decarboxylation and includes THCA and THC isomers, as well as any other cannabinoids FDA determines have similar effects to THC:

• Finished products for ingestion, inhalation, or topical use must contain ≤0.4 mg total THC per container (the innermost packaging that directly holds the product, as further clarified by FDA guidance).

• Intermediate materials/WIP (extracts, distillates, powders) must remain ≤0.3% total THC post‑decarb.

• Synthetic/converted cannabinoids (e.g., CBD that is chemically converted into delta‑8, delta‑10, HHC, or THCP) are excluded from “hemp” and treated as controlled under the CSA.

• Industrial hemp (fiber, stalk, grain/seed oil, microgreens, research crops) is recognized, but viable seeds from plants above 0.3% total THC are excluded.

Risk Awareness

• Employee policy risk: Employees may believe certain hemp products are still legal in their state, but after November 12, 2026, those products may be illegal under federal law, increasing the risk of policy violations, disciplinary actions, and safety incidents in the workplace.

• Multi‑state compliance risk: Operating in multiple states could lead to rule inconsistencies, raising the likelihood of uneven enforcement, employee complaints, and potential litigation.

• Contract and insurance risk: Existing supply, distribution, and marketing agreements may become impracticable or void when the law changes, and some insurance policies may exclude coverage for banned products, creating exposure to uninsured losses.

• Regulatory change risk: Rapid updates from the FDA (within 90 days of enactment) and evolving enforcement practices may change compliance requirements; failure to monitor and adapt can result in non‑compliance and operational disruption.

For additional details:

• US – H.R.5371 – Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026
• House Republicans Press Release (November 12, 2025)

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