On May 20, 2025, the U.S. District Court for Oregon permanently prohibited Oregon state officials from enforcing Measure 119.
In 2024, Oregon voters approved Measure 119, which became effective on December 5, 2024. Measure 119 required many employers in the cannabis sector applying for, or renewing, a license from the Oregon Liquor and Cannabis Commission (OLCC) to submit a signed labor peace agreement between the employer and a “bona fide labor organization.” Alternatively, employers had to provide an attestation document signed by both the applicant and a “bona fide labor organization” stating that the parties had already entered into and would abide by the terms of a labor peace agreement. There was no provision covering an employer who has had no interactions with a labor organization, thus implying that the employer had to seek out a “bona fide labor organization” to renew its license.
Oregon Measure 119 Litigation Update
Two companies sued state officials, arguing that Measure 119 is unconstitutional because, among other things, it was preempted by the National Labor Relations Act (NLRA) and violated the First Amendment. The court granted the companies’ request for a permanent injunction, holding that Measure 119 was preempted by the NLRA and violated the companies’ First Amendment rights to free speech. The court did not reference what effect the judgment had on those employers that had already submitted a labor peace agreement to the OLCC. In its analysis of whether Measure 119 was preempted by federal law, the court also held that the NLRA likely applies to the companies’ cannabis businesses.
Key Takeaways for Cannabis Employers
- Employers seeking to apply for or renew their licenses from the OLCC no longer need to submit labor peace agreements.
- Employers have rights and obligations to bargain in good faith with employee groups, unions, and employees. Employees have rights to engage in protected concerted activities.
