Federal judge blocks Oregon law requiring marijuana business workers set up labor agreements with workers
A measure approved by Oregon voters was struck down by a federal judge who ruled it unconstitutional.
Under Measure 119, which was passed by Oregon voters last year, cannabis businesses’ licenses would have been contingent on having labor agreements in place. This also meant, according to the Associated Press, that employers would need to remain neutral when labor organizations approached their employees to discuss collective bargaining rights.
Portland marijuana retailer Ascend and Bubble’s Hash, a processor that makes cannabis edibles and concentrates for sale in the city, filed a lawsuit challenging the measure in February, according to The Oregonian. U.S. District Judge Michael H. Simon issued his ruling just two days before Bubble’s Hash’s license would expire, saving them from the measure just in time, the outlet reported.
Simon wrote in his 23-page opinion that Measure 119 violates the plaintiffs’ First Amendment rights and the Supremacy Clause of the U.S. Constitution.
One of the issues at the heart of Simon’s decision was whether the National Labor Relations Act (NLRA) applies to cannabis businesses. The judge noted that the state initially did not think the act was applicable, as marijuana is still federally illegal. They eventually said it was likely applicable because the company sells both marijuana, which is federally illegal, and hemp, which is legal nationwide.
Simon also took issue with the fact that Measure 119 does not clearly distinguish between permissible and coercive employer speech.
"Measure 119 does not distinguish between permissible employer speech and threatening or coercive speech, and Defendants do not argue that Measure 119 prohibits only threatening or coercive speech," Simon wrote.
The judge argued that the measure went beyond restricting coercive or threatening speech and targeted employers who said anything that was "not ‘neutral’ toward unionization."
Ultimately, Simon said that Ascend and Bubble’s Hash were "reasonably" concerned about the enforcement of Measure 119 against them "and have presented evidence that by failing to comply with Measure 119, they could potentially lose their entire businesses." However, compliance is not the answer, according to the judge’s ruling, as he notes that complying with the measure could leave the companies facing "serious costs."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Alexander Wheatley and Stephen Scott, attorneys who represented the two businesses in the suit, released a joint statement after the ruling came down, according to The Oregonian.
"This case is poised to have far-reaching impacts, as many states are considering imposing similar requirements not only on cannabis licensees, but also in other sectors," Wheatley and Scott are quoted as saying in their statement.
The Oregon Department of Justice did not respond to a Fox Business request for comment.