Oregon's voter-approved pot labor law is unconstitutional, federal judge rules

Key Points

• A federal judge in Oregon barred enforcement of voter-approved Measure 119, ruling it unconstitutional.
• Measure 119 would have required cannabis businesses to enter labor peace agreements and remain neutral on union discussions to obtain or renew licenses.
• Judge Michael Simon found the law violated business owners’ free speech and was preempted by the National Labor Relations Act, issuing a permanent injunction.
• Portland cannabis firms Ascend and Bubble’s Hash sued to block the measure, and the state has not yet announced whether it will appeal.

PORTLAND, Ore. (AP) — A federal judge in Oregon struck down a voter-approved measure regarding cannabis labor agreements Tuesday, ruling that it was unconstitutional.

Measure 119, which was passed by Oregon voters last year, required cannabis businesses to have a labor peace agreement with a labor organization in order to obtain or renew a license. The agreements would have required employers to remain neutral when a labor organization communicated with employees about collective bargaining rights.

U.S. District Judge Michael Simon barred enforcement of the measure, finding that it violated the free speech of cannabis business owners and was preempted by federal labor law, The Oregonian/OregonLive reported.

The National Labor Relations Act allows employers to express “any views, argument or opinion” that are not threatening or coercive without facing an unfair labor practice claim.

The lawsuit was filed by Ascend, a cannabis retailer in Portland, and Bubble's Hash, a processor that makes edibles and concentrates also based in Portland.

State lawyers who defended the measure had argued that the measure didn't curb speech because employers can still express opinions about unions as long as they're neutral, The Oregonian/OregonLive reported.

Simon disagreed and entered a permanent injunction barring enforcement of the measure.

“Measure 119 is not limited to restricting only threatening, coercive, false, or misleading speech, but instead prohibits all speech by employers that is not ‘neutral’ toward unionization,” he wrote.

During a hearing last month, Simon said he recognized the “historical and valuable role” of unions and that those who work in the cannabis industry can face greater dangers than typical workers, The Oregonian/OregonLive reported. But he said he struggled with the ambiguity of the measure’s text regarding what it would allow an employer to say or do.

Oregon’s Department of Justice did not immediately respond to a message seeking comment from The Oregonian/OregonLive. It has not yet said whether the state intends to appeal Simon’s ruling.