Posted 4 weeks ago - by

Connecticut Joins Other States in Promoting Unions Within the Cannabis Industry

Connecticut recently legalized the use of recreational marijuana in July of 2021. Additionally, the new legislation included provisions that strongly encourage unions within the cannabis industry. Other states like New York, New Jersey, and California have already enacted mandates that are labor-friendly for companies applying for cannabis licenses.

Cannabis license conditions

These mandates promote collective bargaining and recognition of unions within the cannabis industry. Connecticut has since followed suit by putting conditions on its cannabis business licensing. Organizations applying for these licenses must agree to enter into a labor peace agreement (LPA) with a valid labor organization. An LPA is defined as an agreement between the cannabis business and a union, under which:

  • The owners will not lock out employees.
  • Labor organizations are prohibited from engaging in picketing, work stoppages, or boycotts against the business.
  • The employer must recognize the union as the representative of its employees and engage in bargaining with that union to establish the terms of the LPA.

Additionally, this new legislation requires the LPA to agree to go through arbitration by a neutral labor arbitrator if any part of the agreement is to be violated. Therefore, the State Department of Consumer Protection (DCP) will suspend the business license if the business fails to comply with an order issued by the arbitrator in an attempt to correct a failure to abide by the original agreement.

Businesses’ that find themselves in this position may seek to lift a license suspension by bringing a civil action to the Superior Court. However, the license will remain suspended until:

  • The arbitrator notifies the DCP that the business is now in compliance
  • Both parties notify the DCP that they have resolved their dispute separately
  • The court decides to lift the suspension after a completed hearing

Project Labor Agreements

The new Connecticut legislation includes a requirement in which construction or renovation projects of more than $5 million for any cannabis-related facility, must enter a Project Labor Agreement (PLA) with all contractors and sub-contractors. A PLA is an agreement that:

  • Binds all contractors/sub-contractors on the covered project through the inclusion of specifications in all relevant solicitation provisions and contract documents. Unions with the cannabis industry
  • Establishes uniform terms and conditions of employment for all construction labor employed
  • Allows contractors/sub-contractors to compete for the project regardless of whether they are otherwise parties to collective bargaining agreement.
  • Guarantees against strikes, lockouts, and similar job disruptions.
  • Sets mutually binding guidelines for resolving labor disputes.

Similarly to the the labor peace agreement, anyone involved with the project labor agreement may seek remedies for non-compliance by going through the superior court. Additionally, penalties for non-compliance with a PLA may run up to $10,000 per day that each violation occurs.

When it comes to employee rights and protections, employers should connect with a trusted partner or professional to ensure compliance.

Are you ready to thrive in your industry? Are you ready to say goodbye to your payroll worries and partner with a payroll company you can count on?

The right payroll and HR solutions, resources to stay compliant, and the support of expert account managers can help your business grow and thrive. Contact us today!

Related Posts

Your 2022 American Disabilities Act (ADA) crash course

National Disability Employment Awareness Month is observed every October to commemorate the many and varied contributions of people with disabilities to America’s workplaces and economies The...

Read more...

What California Cannabis Bills Made the Cut 2022?

In 2021, the state of California launched its new Department of Cannabis Control department The department immediately got to work and pushed forward several bills that Governor Gavin Newsom had...

Read more...

How Is 360 Feedback Useful During the Hiring Process?

Feedback from an employer, the candidate, and the recruiter is highly useful information to better understand your hiring process With the labor shortage many are experiencing, an efficient hiring...

Read more...

2022 HR Calendar: Federal Holidays, Tax Deadlines & Other Important Dates

It may be hard to believe but 2021 is coming to an end and 2022 is just around the corner With the new year on its way, we put together a handy 2022 HR calendar with both federal holidays and...

Read more...

California Marijuana Tax Revenue Continues to Offer Billions in Grants

Back in July of 2021 it was announced that California marijuana tax revenue will allocate half a billion for new community programs The state’s Department of Cannabis Control (DCC) announced that...

Read more...

5 Ways to Help Employees with 2022 Open Enrollment

2022 Open enrollment for employee benefits allows employers to reassure employees of their commitment to providing support through their benefits programs However, many organizations continue with a...

Read more...

Leave a Reply

Your email address will not be published. Required fields are marked *

This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.