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A California marijuana retailer has filed a new federal lawsuit against state cannabis regulators and the attorney general’s office, asserting that pro-union requirements in the cannabis sector are unconstitutional.

At issue are longstanding mandates enacted by the state legislature that any cannabis company with 20 or more employees enter into a labor peace agreement (LPA) with a “bona fide” union; such agreements make it easier for unions to recruit and organize workers.

Though LPA requirements aren’t uncommon in many Democratic-leaning states with operational marijuana industries (such as New York), the new lawsuit – filed by retailer Ctrl Alt Destroy on April 26 in U.S. District Court in the Southern District of California – argues that the California law in particular violates the company’s rights to free speech and due process, and also supersedes federal labor laws.

CTRL ALT DESTROY California lawsuit

Ctrl Alt Destroy, a San Diego-area dispensary licensed since 2018, asserted that its business license is in jeopardy if it doesn’t find a labor union with which to enter into an LPA by July, because the state Department of Cannabis Control requires all marijuana companies that meet certain criteria to have signed LPA’s by then. That includes Ctrl Alt Destroy.

Though Ctrl Alt Destroy tried to comply with the LPA rule in 2022, and signed an LPA with a union called the Professional Technical Union, Local 33, and even delivered a copy of the LPA to the state Department of Cannabis Control in October that year.

But then in July 2023, the state Agricultural Labor Relations Board ruled that the Professional Technical Union was not a “bona fide” labor organization, which nullified Ctrl Alt Destroy’s compliance with the LPA rule, putting its business license in jeopardy, the company said in its suit. At least 12 companies reportedly signed LPA’s with the Professional Technical Union before the agreements were thrown out by regulators, MJBizDaily reported last year.

The United Food and Commercial Workers (UFCW) has made major headway in organizing cannabis workers in California, and the International Brotherhood of Teamsters has also been actively recruiting in the marijuana trade across the nation, but many businesses like Ctrl Alt Destroy have been hesitant to deal with powerhouse unions for fear of losing too much at the bargaining table, the company asserted in its lawsuit.

Rather, the California law in question puts too much onus on employers and not enough accountability with unions, Ctrl Alt Destroy asserted, because there’s nothing in state law to prevent unions from taking employees on strikes, or any way for private companies to seek redress in case the union breaks an agreement with an employer.

“The LPA Sections have stripped CAD of all negotiating power as it must obtain a binding Labor Peace Agreement with a no strike provision, allowing the labor organization to withhold its agreement to unless and until it obtains significant concessions,” the lawsuit charges. “These provisions, alone and in combination, impermissibly skew the ‘playing field’ between labor and CAD by giving unfettered leverage to a labor organization dealing with CAD.”

The suit also asserts that the California laws “impermissibly intrude” on federal jurisdiction with regard to labor and business dealings, which it contends are governed by the National Labor Relations Act and the National Labor Relations Board.

“As a condition of California cannabis licensure, and as part of California’s cannabis regulatory scheme, CAD must agree to negotiate and enter into a (LPA) with a ‘bona fide’ labor organization that does not represent CAD’s employees, regardless of the employees’ wishes,” Ctrl Alt Destroy asserted in the suit.

The suit requests that a federal judge strike down the relevant mandates in California law as unconstitutional and issue a permanent injunction prohibiting the state from enforcing any of the LPA rules.

Spokespeople for the DCC and the California attorney general’s office did not immediately respond to requests for comment Tuesday.

The post California cannabis shop sues state, claims pro-union requirements unconstitutional appeared first on Green Market Report.

420GrowLife

via www.KahliBuds.com

John Schroyer, KahliBuds, 420GrowLife