Two Oregon marijuana businesses are taking legal action against a newly approved labor law, arguing it violates constitutional protections and conflicts with federal labor regulations. The lawsuit challenges Measure 119, which requires cannabis operators to enter labor peace agreements (LPAs) to secure or renew their business licenses.
Businesses Claim Measure 119 Violates Constitutional Rights
Bubble’s Hash and Ascend Dispensary, the two plaintiffs in the case, argue that Measure 119, which went into effect on December 5, violates the First Amendment of the U.S. Constitution. They claim it unlawfully forces businesses into agreements that interfere with their contractual obligations.
According to the lawsuit, filed in federal court, the measure is also in direct conflict with the National Labor Relations Act (NLRA), a federal law governing collective bargaining rights. The plaintiffs contend that the NLRA grants employees the right to choose whether or not to engage in union activities—something they believe Measure 119 undermines.
One of the main concerns raised in the lawsuit is that businesses refusing to comply with the law could lose their licenses, which they argue would cause severe financial harm.
State Officials Named in the Lawsuit
The lawsuit doesn’t just challenge the law—it also takes aim at top Oregon officials responsible for enforcing it. Defendants in the case include:
- Oregon Gov. Tina Kotek
- Attorney General Dan Rayfield
- Oregon Liquor and Cannabis Commission (OLCC) Chair Dennis Doherty
- OLCC Director Craig Prins
The OLCC, which regulates the state’s cannabis industry, is tasked with ensuring businesses comply with Measure 119 by requiring proof of a labor peace agreement before issuing or renewing business licenses.
The plaintiffs argue this requirement forces businesses into arrangements that may not align with their interests or those of their employees. “Measure 119 denies employees the right to decide for themselves whether or not to join a union,” the lawsuit states.
What Is a Labor Peace Agreement?
LPAs are agreements between businesses and labor unions that typically prevent union-related strikes or disruptions in exchange for allowing union organizers to communicate with workers. In states like California, similar requirements exist for cannabis operators, but Oregon’s new law is facing immediate pushback.
According to UFCW Local 555, the union that sponsored Measure 119, LPAs ensure fair working conditions and prevent employer retaliation against workers interested in unionizing. The union argues that such agreements benefit employees by giving them a stronger voice in negotiations.
However, opponents—including the businesses behind the lawsuit—say these agreements impose unnecessary burdens on small operators, many of whom are already struggling in a competitive and highly taxed industry.
Voter Support vs. Industry Pushback
Oregon voters overwhelmingly passed Measure 119 in November, signaling broad public support for labor protections in the cannabis industry. However, many business owners see the law as government overreach.
Legal experts say the case could set an important precedent for other states considering similar labor peace agreement requirements. If the lawsuit is successful, it could challenge the enforceability of LPAs nationwide, particularly in industries where federal and state laws on unionization often clash.
While Oregon officials have yet to respond to the lawsuit publicly, the case could take months—or even years—to resolve. In the meantime, cannabis businesses in the state must still comply with Measure 119 or risk losing their licenses.