One Big Beautiful Bill: What the Law Means for HR, Payroll & Compliance

When President Trump signed the One Big Beautiful Bill into law earlier this year, most headlines focused on the sweeping tax, business, and economic implications. But for HR, payroll, and compliance teams in compliance-centric industries, the impact is far more immediate and operational.

These organizations already navigate complex regulatory environments, especially the cannabis industry. With strict state-by-state requirements, 280E tax limitations, unique banking challenges, and a heavy hourly workforce, any major federal legislation introduces new layers of complexity that employers cannot afford to overlook.

The One Big Beautiful Bill is no exception.

Tax Deduction and Payroll Reporting Changes

Unlike traditional industries, compliance-centric industries face regulatory burdens on every level: local, state, and federal. The new law amplifies those pressures with changes that directly affect payroll, tax handling, and workforce management. Key areas of impact include:

1. Overtime Tax Deduction Changes

One of the most significant components of the bill is adjustments to how overtime pay is treated.

For a compliance-centric organizations with a large hourly workforce, this change is massive.

Effective for 2025 through 2028, individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay – such as the “half” portion of “time-and-a-half” compensation — that is required by the Fair Labor Standards Act (FLSA) and that is reported on a Form W-2, Form 1099, or other specified statement furnished to the individual.

Accuracy is essential, and compliance-centric organizations must ensure their payroll systems are recalibrated correctly to avoid compliance risk.

2. Heightened Payroll & Reporting Requirements

The bill introduces new tax structures and reporting protocols that have direct implications for:

• payroll withholdings
• employer tax contributions
• year-end reporting
• benefits administration

For compliance-centric industries like cannabis, precision is non-negotiable.

3. State-Level Conflicts Are Now More Pronounced

Federal updates rarely align neatly with state cannabis laws. Other compliance-centric industries must also pay close attention to this as well.

Employers must now reconcile:

• new federal tax rules
• existing state regulations
• differing labor laws by jurisdiction

This creates a more fragmented operational landscape, especially for MSOs managing multiple state markets.

How Compliance-Centric Companies Can Stay Ahead

At Würk, we support cannabis operators as well as a wide range of other compliance-heavy industries in navigating today’s rapidly evolving regulatory environment. The One Big Beautiful Bill underscores just how critical integrated HR, payroll, and compliance systems are for organizations operating under heightened oversight.

Würk’s platform is built specifically for cannabis businesses and includes:

• Payroll & HR Built with Compliance in Mind: Accurate, compliant payroll that supports multi-state operations and adapts to new tax deductions.
• Regulatory & Tax Compliance Expertise: Support navigating cannabis-specific requirements, 280E, audit preparation, and emerging federal legislation.
• Scalable Infrastructure: A single system designed to grow alongside operators as the industry expands and regulations evolve.
• Trusted Compliance-Centric Industry Partnerships: Access to accountants, legal experts, and banking partners who understand the realities of compliant organizations.

Looking Forward

With the One Big Beautiful Bill now law, employers across cannabis and other compliance-heavy industries must move quickly to update payroll systems, revise compliance workflows, and educate their teams. This legislation marks the beginning of broader federal changes, and organizations operating under heightened regulatory scrutiny need to stay ahead, not simply react.

Würk helps operators remain resilient and compliant amid constant regulatory shifts. By uniting payroll, HR, scheduling, and compliance into one seamless platform, we reduce risk and enable regulated businesses to focus on what matters most: growth.

Because in cannabis and other highly regulated compliance-intensive industries, compliance isn’t just a safeguard it is the engine that enables sustainable growth.

For more information on how the One Big Beautiful Bill affects employers and employees, download our frequently asked questions below!