Glass House Brands Provides Updates to Recent Events

Executive Summary

• Glass House Brands Inc. announced significant operational and compliance changes following a July 10, 2025, federal raid by US Immigration and Customs Enforcement (ICE) at two of its California farms.
• The raid resulted in the detention or arrest of approximately 360 individuals for alleged immigration violations, including nine Glass House employees and one third-party contractor employee who died from injuries sustained during the incident.
• The Company has terminated its relationships with two Farm Labor Contractors, hired new compliance consultants (including former ICE Director Julie Myers Wood), implemented strict E-verification and age-gating protocols, and signed a Labor Peace Agreement with the International Brotherhood of Teamsters.

Key Details

• The Raid: On July 10, 2025, federal officers executed search warrants at two Glass House farms in California, seeking evidence of immigration violations under Title 8 of the U.S. Code.
• Detentions and Arrests:
  • Approximately 360 individuals were detained or arrested; the Company could not verify the exact number or identities.
  • Nine Glass House employees were detained or arrested.
  • Other detainees included employees of third-party Farm Labor Contractors or individuals unassociated with the Company.
  • George Retes, an employee of the security contractor for the Camarillo facility, was detained for three days without charges; he is a U.S. citizen and Army veteran.
• Casualties and Minors:
  • Jaime Alanis Garcia, an employee of a third-party contractor, died from injuries sustained during the raid.
  • Federal authorities reported detaining approximately 11 minors (ages 14–17); the Company states that if true, none were Glass House employees.
• Labor Practices and Wages:
  • The Company asserts that no individuals working at its facilities on July 10 were paid below federal or California minimum wage.
  • For the first six months of 2025, labor contractors were paid an average net hourly rate of approximately $18.60, which is 12% higher than California’s minimum wage and 2.2x the federal minimum.
  • The Company maintains a strict policy requiring all workers (including contractors) to be 21 or older, exceeding federal and state agricultural labor laws which permit minors as young as 12 to work in agriculture.
• Operational Changes:
  • Contractor Termination: The Company terminated its relationship with the two Farm Labor Contractors involved.
  • New Compliance Measures:
    • Engaged Guidepost Services, led by Julie Myers Wood (former Director of ICE and Assistant Secretary of Homeland Security), to assist counsel with implementing best practices for employment eligibility verification.
    • All employees and farm labor are now E-verified, with underlying documents reviewed by experts for validity and age gating.
    • Enhanced age gating controls implemented for all facility access (contracted employees, vendors, visitors, customers, and Company employees).
  • Labor Agreement: Signed a Labor Peace Agreement with the International Brotherhood of Teamsters for its license-holding entities, allowing the Teamsters to present to employees.
• Protests: Violent protests broke out outside law enforcement barricades in response to the raids; the Company states no employees were involved.

Notable Quotes

• "The Company has made significant changes to labor practices that are above and beyond legal requirements."
• "All employees of the Company and Farm labor are now E-verified and the underlying documents are reviewed by experts for validity and age gating."