A federal judge has struck down Oregon’s voter-approved Measure 119, ruling that it violates the U.S. Constitution and federal labor law.
On Tuesday, U.S. District Judge Michael H. Simon issued a permanent injunction against the enforcement of the measure, which would have required marijuana businesses to enter into labor peace agreements (LPAs) with unions as a condition of licensing or license renewal.
The law, approved by voters in 2024, mandated that cannabis companies remain neutral toward unionization efforts and submit documentation of an LPA with a “bona fide” labor organization. The judge concluded that this provision infringes on the free speech rights of business owners and is preempted by the National Labor Relations Act (NLRA), which governs union-related matters at the federal level.
“The measure forces cannabis employers into negotiations they otherwise would not be required to enter,” wrote Judge Simon in the 23-page ruling. He added that the neutrality requirement unlawfully restricts employers from expressing their views about unionization, even when that speech is non-coercive and protected under federal law.
The case was brought by Casala LLC, doing business as Bubble’s Hash, and Rec Rehab Consulting LLC, operating as Ascend Dispensary. Both companies argued they were unable to secure fair labor agreements under the measure and risked losing their licenses due to noncompliance.
Judge Simon determined that Measure 119 is both “preempted by the NLRA” and an “unconstitutional restriction on speech,” and that enforcement would cause irreparable harm to the businesses involved. He further ruled that Oregon regulators are now permanently barred from enforcing the law.
The ruling marks a significant setback for organized labor advocates who pushed for the measure as a condition of cannabis licensure. However, the court emphasized that federal labor law already provides protections for union organizing, and that states may not override those federal standards—even within industries like marijuana, which remain federally illegal.
