California law requires commercial cannabis licensees with 20 or more non-supervisory employees to enter into a labor peace agreement; however, the legal requirements of such an agreement are far less than labor unions would suggest. Licensees should avoid signing a labor peace agreement without first consulting an attorney.
When filing an application for a new or renewal annual cannabis business license, California State law (i.e., MAUCRSA) and regulations adopted by the California Department of Cannabis Control (DCC) requires commercial cannabis businesses to submit a notarized statement confirming that the applicant either: (a) has fewer than 20 employees or (b) will enter into and abide by a Labor Peace Agreement (LPA) within 60 days of employing its 20th employee. Failure to comply with the requirements can lead to license suspension or revocation. But what does it mean to comply?
First, an LPA is a private contract between an employer and a union in which both sides agree to waive certain rights under federal labor laws. Multiple unions are currently active in the cannabis industry, so a number of organizations may approach...
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