California Attempts to Weed Out Unfair Labor Practices at the State Level by Enacting Union-Friendly Regulation on Employers in the Cannabis Industry

California Attempts to Weed Out Unfair Labor Practices at the State Level by Enacting Union-Friendly Regulation on Employers in the Cannabis Industry

JD Supra Article As the cannabis industry has rapidly progressed over the years, states such as New York, New Jersey and Illinois have begun to implement legislation that encourages employers to engage in labor peace agreements with unions. On October 12, 2019, California went even further than encouragement when Governor Gavin Newsom signed into law Assembly Bill 1291, which amended California’s Medicinal and Adult Use of Cannabis Regulation and Safety Act (MAUCRSA). Distinct from other state legislation, California’s new law mandates that employers with 20 or more employees maintain a labor peace agreement as a condition of obtaining a state cannabis license. For this reason, California’s new bill has raised constitutional concerns. Labor Peace Agreements for Employers in the Cannabis Industry Labor peace agreements are agreements between an employer and a bona fide labor organization to exchange obligations. The ostensible purposes of state regulations promoting labor peace agreements are to create union protections for cannabis industry workers, while protecting employers from strikes and other disruptions of business. Prior to the signing of California’s latest bill, most state licensing and regulatory schemes listed the existence of a labor peace agreement as an optional factor to be evaluated in the overall licensing process. For…