New Mexico House Bill 331 Proposes Mandatory Labor Peace Agreements for Cannabis Businesses

LOS ANGELES- New Mexico House Bill 331 was introduced, proposing that cannabis establishments with ten or more employees be required to enter into, maintain, and adhere to labor peace agreements with bona fide labor organizations. This requirement would become a material condition for licensing, with non-compliance potentially leading to license refusal, suspension, or revocation.

The bill outlines that initial applicants must provide written attestation of their commitment to establishing such agreements within sixty days of employing their tenth employee. Existing licensees are mandated to submit the actual agreements to the state’s Cannabis Control Division within six months of reaching the ten-employee threshold. Furthermore, starting September 1, 2025, the division would be prohibited from renewing licenses for establishments with ten or more employees unless they provide a written attestation from a labor organization confirming adherence to a labor peace agreement.

The proposed labor peace agreements would require cannabis establishments to allow labor organizations access to employees at reasonable times to discuss representation and employment rights. In return, the labor organizations would agree not to engage in picketing, work stoppages, boycotts, or other economic interference with the business.

This legislative move aligns with trends in other states where labor peace agreements are either mandated or incentivized within the cannabis industry. Such agreements are designed to balance the interests of employers and labor organizations, aiming to ensure workplace harmony and uninterrupted business operations.

As the bill progresses through the legislative process, it will be subject to further review and debate. If enacted, it would represent a significant development in New Mexico’s regulatory framework for the cannabis industry.