By rssfeeds-admin On Wednesday, a marijuana processing company, Bubble’s Hash, and Ascend Dispensary filed a lawsuit in the Oregon District Court in Portland alleging Oregon’s United for Cannabis Workers Act, Ballot Measure 119, is unconstitutional and argues that the law will harm businesses.
Measure 119 was passed by Oregon voters in November 2024. The measure requires cannabis retailers and processors to remain neutral in their communications to employees from labor organizations about bargaining rights.
Current law gives employees the right to collectively bargain, however, this measure requires cannabis businesses to have an agreement with a labor organization that at minimum requires the business to remain neutral.
If cannabis businesses violate the rule, the measure allows the Oregon Liquor and Cannabis Commission to impose fines or licensing and certification penalties.
Now, the plaintiffs are seeking a ruling declaring the measure unconstitutional in their lawsuit filed against Oregon Governor Tina Kotek, Attorney General Dan Rayfield, OLCC Chair Dennis Doherty, and OLCC Executive Director Craig Prins in their official capacities.
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The cannabis businesses argue that Measure 119 violates the First Amendment of the U.S. Constitution — which, in part, bans states from passing laws that impair obligations in contracts. They also argue the measure conflicts with the National Labor Relations Act.
The lawsuit takes issue with a provision in Measure 119 mandating cannabis licensees to contract with a “bona fide labor organization” under a “labor peace agreement.”
According to the plaintiffs, there are only two “bona fide labor organizations” that will enter into a labor peace agreement with licensees — including Teamsters and UFCW 555.
“Measure 119 fails to provide any dispute resolution process if the bona fide labor organization and the licensees cannot agree to the terms of the LPA,” the lawsuit claims. “The licensees, including plaintiffs, are left without choice or bargaining power in order to renew their licenses.”
“Measure 119 fails to recognize an employee’s right to choose (or not) their union representation while commanding the licensees to enter into binding contracts, albeit improper contracts, or risk licensure,” the lawsuit furthers. “Measure 119 also fails to define or sufficiently define key terms and processes leaving licensees, including plaintiffs, to guess as to how to comply with Measure 119 when presented with one-sided terms that violate the OLCC’s rules and the NLRA’s stance on neutrality, thus subjecting the licensees to lack of fair notice and arbitrary enforcements.”
In a press release announcing the lawsuit, the business’ attorneys said, “The Plaintiffs value and respect their hard-working teams. They are not anti-union, but rather they are pro employee. Measure 119 denies employees the right to decide for themselves whether or not to join a union and is inconsistent with the NLRA which provides employees with the right not to engage in any union activity. The NLRA also grants employers the ability to speak freely to employees about the pros and cons of unionization as long as they do not threaten, interrogate or make promises to employees in exchange for an employee’s vote against unionization or otherwise not supporting the union.”
The attorneys continued, “If enforced, Measure 119 could deny licenses to those cannabis businesses that fail to follow the law and would irreparably harm those businesses and their employees, many of whom rely on their employer for their family’s income and benefits, including health care. Measure 119 is anti-employer, anti-employee and anti-family.”
Ascend’s retailer license is up for renewal Feb. 18, 2025, and was forced to renew without entering an LPA after several attempts to find a “’bona fide labor organization’” were unsuccessful and the terms of the LPA would require the dispensary to violate federal and state law to renew its license, the lawsuit claims.
Similarly, Bubble’s Hash’s license is up for renewal May 22, 2025, the lawsuit says, noting the terms of the LPA would require the business to violate federal and state law to renew its license.
Officials with Governor Kotek’s office and the OLCC told KOIN 6 News the governor and the agency do not comment on pending litigation.
A spokesperson for Attorney General Rayfield’s office said they are assessing the complaint.
In 2024, while advocating for Measure 119, UFCW Secretary-Treasurer Sandy Humphrey said the act could provide more safety for workers in the cannabis industry.
“Cannabis workers lack the protections to speak out about safety and product standards. We’ve heard the same stories from cannabis workers across the state. Toxic chemicals, unchecked pests, and fire hazards plague the Oregon cannabis industry,” Humphrey said. “Employers are cutting corners at every step at the cost of workers and consumers. When workers try to speak out about safety concerns or products that don’t meet state regulations, they’re met with intimidation because they lack the protections other workers have. The reality is, when you buy weed in Oregon, you don’t know if it meets basic consumer standards, and you don’t know whose life was put in danger to make it.”
Portland-based economist, Beau Whitney of Whitney Economics, previously told KOIN 6 News the petition could also be beneficial for employees who work for large cannabis businesses.
However, Whitney argued that the measure could harm small cannabis businesses, which make up a majority of the cannabis industry in Oregon. He noted that small cannabis businesses are facing low profitability and high costs for labor and materials.
“That’s not a recipe for success in a period where you’re not making any profit. So, by increasing lobbying, and unionizing in order to raise wages, it’s actually hurting the businesses themselves to the point where a lot of them may not survive,” Whitney said. “And so right now in Oregon, you’re seeing a lot of consolidation. Businesses are selling out because they can’t make it anymore.”
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