Federal Court Invalidates Oregon’s Cannabis Labor Neutrality Law

LOS ANGELES- A federal judge has ruled that Oregon’s Measure 119, which mandated labor neutrality agreements for cannabis businesses, is unconstitutional. The decision impacts the regulatory landscape for the state’s cannabis industry.

Measure 119, approved by voters in November 2024, required cannabis businesses to enter into labor peace agreements with unions as a condition for obtaining or renewing licenses. These agreements obligated employers to remain neutral during unionization efforts.

U.S. District Judge Michael Simon determined that the measure infringed upon employers’ First Amendment rights by restricting their ability to express views on unionization. He also found that the measure was preempted by the National Labor Relations Act, which permits employers to express non-coercive opinions about unionization.

The lawsuit challenging Measure 119 was filed by Portland-based cannabis companies Ascend and Bubble’s Hash. They argued that the law compelled them to adopt a neutral stance on unionization, limiting their free speech rights.

Judge Simon issued a permanent injunction against the enforcement of Measure 119, citing its broad restrictions and ambiguity regarding permissible employer speech.