A federal judge has ruled that Oregon’s cannabis union law, Measure 119, is unconstitutional, effectively overturning the measure approved by voters in November 2024. District Judge Michael H. Simon issued his decision on May 20, 2025, stating that the law violates both the U.S. Constitution and the National Labor Relations Act (NLRA) by infringing on employers’ rights to free speech.
Measure 119, which took effect on December 5, 2024, mandated that employers in the cannabis sector submit a labor peace agreement alongside their license applications or renewals. This agreement required employers to remain neutral regarding communications between labor representatives and their employees about unionization rights. Failure to submit this agreement could result in the denial of a business license, and non-compliance could lead to license revocation.
The plaintiffs in the case, Bubble’s Hash and Ascend Dispensary, argued that Measure 119 restricted their First Amendment rights. Judge Simon concurred, asserting that the measure unjustly limited employers’ speech that is not neutral toward unionization.
In his 23-page opinion, Judge Simon highlighted that the law fails to differentiate between employer speech that is coercive or misleading and that which is not. This lack of distinction, he stated, contravenes the protections afforded under the NLRA, which safeguards employers’ rights to express their views as long as there is no threat of retaliation against employees.
During the 2024 election, Measure 119 garnered 56.7% of the vote, meeting the simple majority necessary for enactment. The measure was backed by the Oregon Workers political action committee (PAC) and received over $4.2 million in contributions. In contrast, the Advance Liberty PAC, which opposed the measure, raised only $12,735.
Proponents of Measure 119 argued that the cannabis industry required stronger union protections due to safety issues, citing hazardous work conditions and a lack of adequate enforcement of existing regulations. They claimed the measure would empower workers to negotiate for better safety standards and working conditions through collective bargaining.
Opponents, including the Taxpayers Association of Oregon, contended that Measure 119 would increase labor costs and negatively impact the already struggling cannabis market. They pointed out that the legal cannabis sector is under pressure from unregulated black market competitors and faces high taxes and regulatory burdens.
Following the ruling, Judge Simon issued a permanent injunction, preventing the enforcement of Measure 119. As of May 22, officials from the Oregon Department of Justice have not indicated whether they will appeal this decision.
Legal representatives for the plaintiffs remarked that this ruling could influence similar legislative efforts across various states, emphasizing the need to maintain a balance of power between labor and management.
The case has drawn attention due to conflicting rulings in different jurisdictions, as a California judge has upheld a similar law while the Oregon ruling puts its counterpart on hold. The ongoing legal discourse suggests that the issue may not be resolved without further appeals and judicial scrutiny.
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