In May 2025, a federal district court invalidated Oregon’s Measure 119, which required cannabis employers to enter a Labor Peace Agreement (LPA) with a “bona fide labor organization,” remain neutral during union organizing campaigns, and refrain from interfering with organizing efforts in order to obtain or renew a state license. In Casala, LLC v. Kotek, 789 F.Supp.3d 1025 (D. Or. 2025), the court held Measure 119 was unconstitutional and preempted by the National Labor Relations Act (NLRA)—the federal law that governs private-sector union organizing. Under the NLRA, employers are permitted to express “any views, argument, or opinion,” or disseminate such expression, provided that expression “contains no threat of reprisal or force or promise or benefit.” The Court determined that Measure 119 went too far by prohibiting employer’s permissible free speech. As a result, Oregon regulators are no longer requiring or reviewing LPAs as part of cannabis license applications.
Although this ruling does not directly change California law, it is significant. It shows that federal courts are willing to scrutinize state-imposed LPA mandates—particularly where they may conflict with federal labor law. Other states considering similar requirements are watching closely.
California’s LPA requirement remains in place. Under California Business and Professions Code §§ 26001 and 26051.5, cannabis businesses with 10 or more employees (or businesses with 20...
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