A federal judge has invalidated an Oregon voter-approved measure mandating that cannabis businesses establish labor peace agreements with their employees. The ruling, issued by U.S. District Judge Michael Simon, determined that the measure infringes on the First Amendment rights of business owners and conflicts with federal law.
The measure, known as Measure 119, required cannabis retailers and processors to maintain neutrality when labor organizations approached employees regarding their collective bargaining rights. According to the text of the measure, this neutrality was to be a condition for obtaining a cannabis business license in Oregon.
The legal challenge to this measure was initiated by two cannabis companies: Ascend, a retailer based in Portland, and Bubble’s Hash, a manufacturer of edibles and concentrates. Judge Simon noted that the measure fails to differentiate between acceptable employer speech and that which could be deemed threatening or coercive.
In his decision, Simon stated, “Measure 119 seeks to regulate – and, indeed, forbid – certain truthful, non-deceptive, non-coercive speech about unionization, which conflicts with Congress’s intent to allow uninhibited, robust, and wide-open debate in labor disputes.” He further criticized the state’s defense of the measure, questioning how an employer could remain neutral while still expressing opinions about unionization.
He highlighted that the measure does not merely restrict harmful speech but broadly prohibits any employer communication that is not neutral towards unionization. As a result, Simon issued a permanent injunction against the enforcement of Measure 119, effectively nullifying its requirements.
This ruling marks a significant development in the ongoing dialogue surrounding labor rights in the cannabis industry, particularly in states like Oregon where cannabis is legal. The implications of this decision may influence future legislative efforts regarding labor relations within the cannabis sector.
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