Brooklyn cannabis store challenges New York law requiring union peace agreements.
A cannabis retailer based in Brooklyn is taking New York State to court over a rule it says is unfair. The business, Hybrid NYC, which runs the Gotham shop in Greenpoint Correction: the location is Williamsburg filed a lawsuit in federal court. They’re challenging a law that requires cannabis license holders to sign a labor peace agreement with a union. Hybrid argues this law violates federal rules about how unions and employers are supposed to interact.
The legal team of the cannabis retailer has said the state has overstepped by making these agreements a condition of doing business. They believe it’s wrong for New York to force companies to deal with specific unions, especially when marijuana is still illegal at the federal level. According to the complaint, New York’s requirement gives too much power to just one union — Local 338 — which represents workers in cannabis and several other industries. Hybrid argues that very few other unions are recognized as meeting the state’s standards, which makes it hard for companies to have real options.
The 2021 law that made marijuana legal for adults in New York included this rule about labor peace agreements. These are contracts between a business and a union where the union agrees not to strike or protest, and the employer agrees not to interfere with union efforts. The state says these deals help avoid disruptions in a new and growing industry. But Hybrid believes the rule gives the state too much control and that it’s not legal for the government to require such agreements, especially when the business and workers haven’t asked for union involvement.
Adding to their concern is a rule that says cannabis companies must give employee contact details to unions. Hybrid says that puts too much pressure on workers and makes it easier for unions to step in before employees have even asked for representation. In their case, they say Local 338 contacted them claiming a majority of workers wanted to unionize. The matter is now in the hands of the National Labor Relations Board, which will decide what happens next.
Hybrid’s founder, Joanne Wilson, says this isn’t just about one business. She believes the rule limits how companies can make decisions for themselves and how workers can decide what’s best for them. She says her business already offers excellent pay, full healthcare coverage, retirement benefits, and paid time off. According to Wilson, their workers are treated well and are happy with their jobs, and no outside group should be forced into that situation.
The union, for its part, says it followed the standard organizing process. A union representative said workers came to them, not the other way around, and that they respected employees’ decisions whether they chose to join or not. They also said they are working to make the cannabis industry a stable place for long-term careers.
Still, Hybrid feels boxed in. They say the current system gives Local 338 an unfair advantage and prevents their staff from hearing all sides before making a choice. The lawsuit claims the labor peace agreement leaves no room for open conversation between the employer and employees about other options that might be better for them.
The state’s cannabis office has said they won’t comment on the case while it’s in court. Until then, both sides will wait to see if the federal court agrees that New York’s rules go too far, or if the system stays the same. For now, Hybrid continues to run its cannabis retailer, but the outcome of this case could change how cannabis businesses operate across the state.
Sources:
NY’s cannabis ‘labor peace agreements’ target of federal lawsuit
Brooklyn dispensary sues state over pro-union marijuana industry rule
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