Oregon officials have told a federal appellate court they intend to appeal a ruling of a lower district judge who struck down the law passed by voters requiring licensed marijuana companies to sign labor peace agreements (LPAs) with employees and requiring employers not participate in unionization discussions.
Oregon’s Attorney General Dan Rayfield (D) and Dennis Doherty and Craig Prins of the Oregon Liquor and Cannabis Commission (OLCC) filed a notice of appel to the U.S. Court of Appeals, Ninth Circuit. Tina Kotek’s (D), Dan Rayfield, the Attorney General (D), and Dennis Doherty and Craig Prins of the Oregon Liquor and Cannabis Commission have all announced they are contesting the ruling of the U.S. District Court for the District of Oregon.
After two marijuana businesses—Bubble’s Hash and Ascend Dispensary—filed a lawsuit in the district court challenging the implementation of Measure 119, a federal judge sided with the plaintiffs, finding that the law unconstitutionally restricts free speech and violates the federal National Labor Relations Act (NLRA).
Law360 was the first to report that now the state pushes back and informs the Ninth Circuit it is appealing. The merits of this appeal remain unknown. However, the court set a September 3 deadline for the state to submit an opening brief and required the plaintiffs to respond by October 3.
The law is currently suspended, and a marijuana business who was not able to prove a labor agreement would be subjected to a license denial or cancellation.
In an order last month, the district court judge walked through various components of the legal arguments from both sides and ultimately agreed that the Oregon law is preempted by the NLRA, which is meant to provide protections for workers who want to unionize—but specifically preserves the right for “uninhibited, robust, and wide-open debate in labor disputes.”
Judge ruled that requiring neutrality in negotiations between employers and employees is a violation to the NLRA.
Michael Simon, a Judge at the Federal Court of Appeal in New Jersey said: “Measure 119 doesn’t distinguish between permissible speech by employers and threatening or coercive speeches.” “Measure 119 is not limited to restricting only threatening, coercive, false, or misleading speech, but instead prohibits all speech by employers that is not ‘neutral’ toward unionization.”
Cannabis companies argued on whether this law violates the First Amendment under the U.S. Constitution. They argued “Measure 119 imposes a strict content-based limitation of speech, which is subject to close scrutiny. Defendants have not provided a compelling public interest requiring such a restriction.”
Measure 119 passed with about 57 percent of the vote last November. A regional chapter of United Food and Commercial Workers (UFCW)—UFCW Local 555—had submitted more than 160,000 signatures to qualify the measure for ballot placement last year.
Oregon lawmakers refused to pass a similar bill during the 2023 legislative session. After the failed effort to pass that bill, UFCW decided to launch a new campaign in order to allow voters to decide this issue.
UFCW urged legislators to enact a law codifying labor protections by 2023. And after it was effectively killed by a top House Democrat, it announced that it would be leading a recall effort to oust him.
Please read the following notices from Oregon officials:
Missouri Cannabis Stakeholders Prepare 2026 Ballot Initiative To Create ‘Unified’ Marijuana And Hemp Regulations
Brian Shamblen provided the photo.