Federal Judge Overturns Oregon Labor Rule for Cannabis Licenses

21 May 2025

A federal court has permanently blocked Oregon’s voter-approved Measure 119, which had required cannabis businesses to stay neutral during unionization efforts in order to receive or renew their licenses. The judge ruled the measure unconstitutional and said it violated federal labor laws.

What Did Measure 119 Do?

• Required Oregon cannabis dispensaries and processors to sign “labor peace agreements.”
• Mandated employers to remain neutral during union organizing.
• Tied these agreements to licensing requirements for cannabis businesses.

Why Was Measure 119 Overturned?

• The court found it violated the First Amendment, limiting businesses' right to speak on union matters.
• It also conflicted with federal labor laws that allow employers to express opinions on unionization, as long as they are not coercive.

Key Impacts on the Oregon Cannabis Industry

For Cannabis Businesses:

• No longer required to sign union neutrality agreements.
• Reduced regulatory burden and more flexibility in operations.
• Easier to maintain or renew cannabis licenses without extra legal steps.

For Cannabis Workers:

• Unions lose a major tool for gaining a foothold in the workplace.
• Could lead to fewer protections and a more difficult path to organize.
• Raises concerns about worker rights in the fast-changing Oregon cannabis industry.

What’s Next?

Unions may seek new ways to advocate for cannabis workers, but for now, Oregon cannabis dispensaries and other operators can proceed without neutrality agreements.

This ruling may serve as a model—or a warning—for other states considering similar laws in the rapidly evolving U.S. cannabis landscape.

Looking for more updates on Oregon cannabis laws or how this affects your dispensary or certification process? Stay informed on changes in medical marijuana in Oregon, licensing, and labor regulations.