Two Oregon marijuana businesses have filed suit to stop implementation of voter-approved law mandating that all licensed operators sign labor peace agreements with employees.
On Wednesday, two Oregon companies–Bubble’s Hash and Ascend Dispensary–filed suit in U.S. District Court for Oregon alleging that labor policy requirements violate federal law and are therefore unconstitutional.
Under voter-approved law, marijuana businesses that cannot demonstrate proof of labor peace agreement could face the risk of having their license denied or revoked.
This lawsuit names Oregon Governor Tina Kotek (D), Attorney General Dan Rayfield (D) and Oregon Liquor and Cannabis Commission commissioners Dennis Doherty and Craig Prins as defendants.
Cannabis businesses in Oregon are seeking an injunction against Measure 119 as it requires them to enter neutrality agreements with Unions to secure or keep their licenses; further, licensure conditions include affirmative support of union efforts to organize. Their attorneys stated this in a press release issued by their companies.
“The Plaintiffs assert that Measure 119 violates Article I of the U.S. Constitution which forbids states from passing laws impairing contract obligations,” they claimed. Additionally, Measure 119 would have been pre-empted by federal labor relations laws such as National Labor Relations Act which is designated under Article VI as supreme Law of Land by iterating this same principle to them both (NLRA / Laws of U.S).
Measure 119 could deny licenses to cannabis businesses that do not follow the law and would inflict irreparable harm upon both those businesses and their employees, many of whom depend on them as income source and health coverage source for themselves and their families. Therefore, Measure 119 represents an anti-employer, employee, and family measure.”
Measure 119 was passed with 57% support last November and stipulates a labor agreement that is contractually enforceable, and requires employers to remain neutral when its representatives communicate with employees about rights afforded them by such organizations.
United Food and Commercial Workers Local 555 of United Food and Commercial Workers submitted over 160,000 signatures last year in support of ballot placement of their measure.
At Oregon legislature’s 2023 session, lawmakers did not pass a bill with similar provisions that UFCW had advocated for; its efforts ultimately fell through and this year they are running an advertising campaign allowing voters to decide this matter for themselves.
UFCW advocated to Congress for passage of a bill codifying labor protections by 2023 and, when its efforts were effectively foiled by one House Democrat, announced they would lead an effort for recall against him. To learn more, take a look at this Oregon lawsuit over marijuana industry labor agreement laws:
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