In a significant legal development, U.S. District Judge Michael Simon has ruled Oregon’s Measure 119 unconstitutional, effectively nullifying the voter-approved law that mandated cannabis businesses to enter into labor peace agreements as a condition for obtaining or renewing licenses.
What Is Measure 119?
Measure 119, passed in November 2024 with 57% voter approval, required cannabis retailers and processors to remain neutral during unionization efforts, compelling them to sign agreements with labor organizations—a regulatory approach that echoes broader state-level crackdowns on cannabis operations, such as California’s move to permanently ban hemp-derived THC products. The intent was to facilitate unionization within the burgeoning cannabis industry, ensuring workers could organize without employer interference.
However, Judge Simon determined that the measure infringed upon employers’ First Amendment rights by restricting their ability to express views on unionization. He noted that the law’s requirement for neutrality effectively prohibited any speech not aligned with union support, even if such speech was non-coercive and protected under federal law.
Unenforceable Neutrality
The ruling also highlighted a conflict with the National Labor Relations Act (NLRA), which allows employers to share opinions on union matters provided they do not threaten or coerce employees. By mandating neutrality, Measure 119 was found to be preempted by federal labor laws, rendering it unenforceable.
The lawsuit challenging the measure was filed by two Portland-based cannabis companies, Ascend and Bubble’s Hash, who argued that the law jeopardized their licensing due to its stringent requirements. The court’s decision to issue a permanent injunction against Measure 119 means that Oregon cannabis businesses are no longer obligated to enter into labor peace agreements, altering the landscape of labor relations within the state’s cannabis sector.
Industry Impact
This ruling has significant implications for labor organizing efforts in the cannabis industry, potentially setting a precedent for similar laws in other states. While supporters of Measure 119 viewed it as a step toward protecting workers’ rights, opponents argued it imposed undue restrictions on employers’ speech and conflicted with established federal labor protections.
As the cannabis industry continues to evolve, this decision underscores the complex interplay between state initiatives and federal regulations, particularly concerning labor relations and constitutional rights. Stakeholders on both sides are now assessing the broader impact of this ruling on future labor policies within the cannabis sector.
Published On: May 30, 2025
Original Article: BizJournals.com – Judge rules Measure 119, Oregon cannabis labor law, unconstitutional