What happened?

On May 20, 2025, a federal judge in Oregon struck down Measure 119, also known as the United for Cannabis Workers Act, which required cannabis businesses to sign Labor Peace Agreements (LPAs) with unions to obtain or renew state licenses. The law also mandated employer neutrality in union discussions.

Overview:

This is the first federal court decision to invalidate a cannabis-related LPA mandate, potentially influencing similar laws in other states.

The court ruled that the law:

• Violated the National Labor Relations Act (NLRA) by interfering with federally protected employer speech and labor relations.
• Violated the First Amendment by compelling employers to remain neutral on unionization, restricting lawful, non-coercive speech.

As a result, the court issued a permanent injunction, and the Oregon Liquor and Cannabis Commission (OLCC) announced it would no longer enforce the LPA requirement.

Source References

• Casala LLC, d/b/a Bubble’s Hash and Rec Rehab Consulting LLC
• Oregon Measure 119 Passes: Unionization in the Cannabis Industry (VensureHR)

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