On May 20, 2025, a federal district court in Oregon issued a landmark decision invalidating Measure 119, also known as the United for Cannabis Workers Act. This law, approved by Oregon voters in November 2024 and effective as of December 2024, required all state-licensed cannabis businesses to enter into labor peace agreements (“LPAs”) with unions as a condition for obtaining or renewing their licenses. The law also mandated employer neutrality regarding union organizing efforts.

Background

Two cannabis businesses, Bubble’s Hash and Ascend Dispensary, challenged Measure 119 in court, naming several Oregon state officials as defendants. The plaintiffs argued that the law infringed on their constitutional rights and was preempted by federal labor law, specifically the National Labor Relations Act (“NLRA”).

Court’s Analysis and Ruling

The court granted a permanent injunction, barring Oregon from enforcing Measure 119.

NLRA Preemption

The court determined that the NLRA preempted state law based on two primary grounds:

• Garmon Preemption: The court found that Measure 119 was preempted by the NLRA under the doctrine established in San Diego Building Trades Council v. Garmon[1]. This doctrine prohibits states from regulating conduct that is either protected or prohibited by the NLRA, or even arguably so. The court determined that the LPA requirement directly implicated rights protected by the NLRA, particularly an employer’s right to express views about unionization (as...

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