A federal judge has declared an Oregon law that mandated cannabis businesses to establish labor agreements with unions unconstitutional. U.S. District Judge Michael Simon ruled on Tuesday that Measure 119, which required marijuana operators to secure labor peace agreements (LPAs) before renewing or obtaining licenses, infringes upon federal free speech rights. This ruling halts the enforcement of the law by state officials.
Measure 119 was approved by over 55% of Oregon voters in the previous fall and took effect on December 5. It aimed to foster labor relations within the cannabis sector, a move backed by the United Food and Commercial Workers (UFCW) Local 555, which invested over $2 million to bring the initiative to the ballot after failing to pass similar legislation through the state legislature.
The lawsuit, initiated by Bubbles Hash and Ascend Dispensary in February, contended that the LPA requirement violated their First Amendment rights by restricting their ability to oppose unionization. Additionally, the plaintiffs argued that this requirement conflicted with the National Labor Relations Act (NLRA).
In his ruling, Judge Simon stated that the LPA mandate was preempted by the NLRA, violating the Supremacy Clause of the Constitution and infringing on the plaintiffs’ First Amendment rights. He emphasized that without judicial relief, the plaintiffs faced the untenable choice of either losing their businesses or complying with an unconstitutional law, which he described as irreparable harm.
This decision may set a precedent for similar legal challenges to LPA requirements in other regions across the United States. The Oregon Department of Justice has not disclosed whether it plans to appeal the ruling.
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