Five years ago, the California-based cannabis company Embarc started at a kitchen table. Co-founders and married couple Dustin Moore and Lauren Carpenter opened their first location in Lake Tahoe in March 2020. They could have never anticipated the challenges and opportunities that lay ahead.

Today, Embarc, a finalist for “Retail Cannabis Brand of the Year” in the 2025 Emjays International Cannabis Awards, has grown to 16 locations, all while maintaining a strong commitment to its people-first philosophy. Their collaboration with Leading Retirement Solutions (LRS), through which they provide 401(k) benefits to their employees, has played a vital role in their ongoing success and growth.

“It’s about normalizing in cannabis what’s standard for everybody else in traditional industries,” said Manisha Marquez, Head of Human Resources at Embarc. “As we prepare for growth and add on to our operations, wherever we can give back to our employees, we love to adapt to that.”

Pioneering a New Standard

When Marquez first entered the cannabis industry six years ago, she noted that the industry lacked many of the benefits that are typical in more traditional sectors, and that cannabis HR faced stigma. With hundreds of employees, many of them younger retail workers, she knew Embarc needed access to 401(k) benefits to differentiate itself as a leading employer in the industry.

“We’re not passengers in the cannabis industry,” Manisha explains. “We’re drivers. We are trailblazers, and we lead the way.”

Then, the state of California mandated that all cannabis companies with over 100 employees have some sort of 401(k) benefit in place. Initially, Embarc had established a retirement plan with a group, only to find out later that their funding partner wouldn’t accept contributions from the cannabis industry, a common hurdle in the federally regulated financial sector, which is disincentivized to work with the cannabis industry, due to the federal criminalization of cannabis.

Suddenly, Embarc had to scramble to find another retirement plan provider, and it couldn’t be just anyone. Embarc was looking for a firm that could help them with prior plan years and consolidate several programs they had in place under one surviving plan, to provide consistency and stability across the board.

“Fortunately, LRS was able to support us in moving this forward, which was critical for the business to remain compliant,” said Tessa O’Dowd, Chief Financial Officer at Embarc.

Through their innovative and tailorable 401(k) cannabis solutions, LRS offered a retirement plan that met all of Embarc’s stipulations, supported their recordkeeping and compliance needs, and provided outstanding operational efficiencies. In particular, Embarc has been impressed by LRS’s ability to seamlessly integrate with their Human Resources Information System (HRIS) platform, UZIO.

“The integration was one of the biggest driving factors in our decision to work with LRS,” Marquez notes. “Having that open API format where LRS can just grab data has made the administrative side incredibly easy.”

Since transitioning to LRS in late 2024, the automated data synchronization between LRS and Embarc has eliminated what Marquez describes as an “administrative nightmare,” the constant need to manually add new hires and remove terminated employees from the system, as well as maintain up-to-date records on employee contributions.

People-First Alignment

Beyond administrative efficiencies, Embarc values LRS’ hands-on and responsive customer service approach, which aligns with their own people-first values and passion for going above and beyond for customers.

“Every interaction feels like they want to be a partner with Embarc,” Marquez said. “They’re willing to jump in at the granular level and fix things for us if needed. It’s not just ‘you did this wrong’—it’s a collaborative effort.”

More importantly, working with LRS allows Embarc to do right by their employees, Marquez said.

“Every year, we try to think as an organization: with the ability that we have and the cash flow we have, how do we give back to our employees?” said Marquez.

That means all employees. Through a Pooled Employer Plan (PEP), LRS reduces Embarc’s administrative burden and fiduciary liability, enabling the company to offer the same retirement plan across all organizational levels.

“There’s no ‘you’re entry level, so you don’t get this,'” Manisha says. “That equal benefit shared mutually amongst every level of the company really goes a long way.”

Elevating Cannabis Workforce Standards

More than half of Embarc’s workforce is enrolled in their 401(k) plan. According to LRS’ data, withdrawals from the 401(k) program have been minimal, and Embarc’s enrollees are associated with $280k saved YTD 2025.

Still, the impact goes beyond these impressive numbers, Marquez notes. The 401(k) offering reinforces Embarc’s standing as a trusted employer and appeals to candidates.

“It separates us from the competition,” said Marquez. “People take you seriously. People want to work for you. Anyone we pull from outside the cannabis industry asks about 401(k) options and rollovers. It makes us a much more attractive employer.”

With a younger workforce that doesn’t always understand the purpose of retirement benefits, Embarc has also enhanced their onboarding process to include education about 401(k) participation. Using materials provided by LRS, their internal HR team walks new hires through the basics during onboarding.

The result? More Embarc employees are inquiring about 401(k) options and investing in their futures than ever before.

Helping Each Other Grow

Embarc plans to expand its footprint in California considerably within the next year. As they continue an aggressive growth trajectory, having a solid retirement benefits foundation in place instills confidence, from the entry-level employees to the executives.

“It helps us attract talent and provides a level of normalcy within the industry,” Marquez reflects. “Just because it’s cannabis doesn’t mean it’s not an established industry.”

With all of this in mind, Marquez doesn’t hesitate; she’d “one hundred percent” recommend LRS to others.

“The partnership has been great. We value companies that can customize things for us and work with us. LRS has been willing to help us figure out structures and provide administrative relief,” she said. “It feels like they genuinely want to partner with us to help each other grow.”