Labor peace agreements for cannabis businesses

State law requires many commercial cannabis licensees to enter into, and abide by, labor peace agreements. Recent changes to state law have strengthened these requirements, by expanding the number of licensees that are subject to these requirements.

This FAQ page is intended to help educate cannabis licensees and workers about state-law requirements related to labor peace agreements in the cannabis industry. This FAQ page is for informational purposes only and is not intended to implement, interpret, or make specific any laws or regulations enforced by DCC.

For additional information, see:

• Business and Professions Code, section 26001, subdivision (y)
• Business and Professions Code, section 26051.5, subdivision a, paragraph (5)

Current labor peace agreements

Labor peace agreements on file

DCC has a full or partial labor peace agreement (LPA) on file from the licensees listed in table format in the link above. Additional information can also be requested.

Labor peace FAQs

A labor peace agreement is an agreement between a commercial cannabis licensee or license applicant and a bona fide labor organization. Under a labor peace agreement, the labor organization and its members agree:

• Not to engage in picketing, work stoppages, boycotts, or any other economic interference with the licensee’s or applicant’s business.

In return, the licensee or applicant agrees:

• Not to disrupt efforts by the labor organization to communicate with, and attempt to organize and represent, the licensee’s or applicant’s employees.
• To provide the labor organization access, at reasonable times, to areas in which the licensee’s or applicant’s employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment.

A labor peace agreement may not mandate a particular method of election or certification of the labor organization.

After entering into a labor peace agreement, a licensee must maintain compliance with that labor peace agreement. A licensee seeking to renew a state cannabis license must attest that it remains in compliance with any applicable labor peace agreement.

No, a labor peace agreement is not the same thing as a collective bargaining agreement. Whether or not a cannabis licensee or applicant has a collective bargaining agreement in place, the cannabis licensee or applicant must still make sure to comply with all state laws regarding labor peace agreements.

If a cannabis licensee or applicant is required to enter into a labor peace agreement (see below), all of the licensee’s or applicant’s employees must be covered by a labor peace agreement. A labor peace agreement that only covers some subset of the licensee’s or applicant’s employees is not sufficient.

“Employees,” as used here, does not include supervisors.

Please note that state law imposes labor-peace-agreement requirements (if applicable) in connection with each application or license, even if the applicant or licensee holds multiple licenses and has already entered into labor peace agreements in connection with other licenses.State law requires that a labor peace agreement prohibit picketing, work stoppages, boycotts, and any other economic interference with the applicant’s or licensee’s business.

State law also requires that a labor peace agreement provide a bona fide labor organization access, at reasonable times, to areas in which the applicant’s or licensee’s employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. These goals cannot be met unless a labor peace agreement covers all of an applicant’s or licensee’s employees.

Changes to state law mean that smaller cannabis businesses will be subject to the state’s labor-peace-agreement requirements, beginning July 1, 2024.

Currently, all applicants or licensees with 20 or more employees are required to enter into labor peace agreements.

Beginning July 1, 2024, this requirement applies to all applicants or licensees with 10 or more employees.

“Employees,” as used here, does not include supervisors.

I am applying for a state cannabis license, but my business is not yet big enough to be subject to the state’s labor-peace-agreement requirements. What happens if I hire more employees in the future?

The answer depends on whether the license applicant has 10 or more employees. Remember: applicants and licensees with 10 or more employees will become subject to the state’s labor-peace-agreement requirements beginning July 1, 2024.

• 10-19 employees: If an applicant has 10 or more employees, but fewer than 20 employees, it must enter into a labor peace agreement by the earlier of the following two dates:
  • Within 60 days of employing its 20th employee; or
  • July 1, 2024
  • Within 60 days of employing its 20th employee; or
  • July 1, 2024

  Remember: applicants with 10 or more employees become subject to the state’s labor-peace-agreement requirements beginning July 1, 2024, even if they do not hire any additional employees.

  • 0-9 employees: If an applicant has 9 or fewer employees, it must enter into a labor peace agreement after employing its 10th employee by the later of the following two dates:
    • Within 60 days of employing its 10th employee; or
    • July 1, 2024

    I applied for a state cannabis license before state law changed to require labor peace agreements for cannabis businesses with 10-19 employees. Do I still need to comply with this requirement?

    Yes: Beginning July 1, 2024, a licensee with 10 or more employees must have a labor peace agreement in place in order to renew an existing license.

    DCC will not be able to renew your license unless you comply with this requirement.

    What if a licensee fails to maintain compliance with a labor peace agreement?

    Compliance with the terms of a labor peace agreement is a condition of state cannabis licensure. A licensee that fails to maintain compliance with a labor peace agreement risks losing its state license.

    I believe a cannabis licensee is violating a labor peace agreement. How can I report this?

    Any current or former employee of a cannabis licensee may submit a complaint to the DCC regarding the licensee’s failure to comply with a labor peace agreement. Labor organizations may also submit complaints.

    If you wish to submit a complaint, please e-mail complaints@cannabis.ca.gov . Please include the phrase “LPA complaint” in the subject line and provide as much documentation as possible to support your complaint.

    In addition, certain types of conduct by an employer engaged in the cultivation of cannabis in violation of labor peace agreement requirements may be considered unfair labor practices under the Agricultural Labor Relations Act (ALRA), a statute that protects the organizational rights of agricultural employees and governs labor relations between agricultural employers and labor organizations. The Agricultural Labor Relations Board (ALRB) is the agency charged with enforcement of the ALRA.

    More information about the ALRB and ALRA is available on the ALRB’s website. For information about how to file unfair labor practice charges with the ALRB, please contact one of the ALRB’s Regional Offices.

    What if I believe a cannabis licensee has entered into a labor peace agreement with an entity that is not a “bona fide labor organization”?

    The ALRB is responsible for determining whether an entity is a “bona fide labor organization” under state law. Any current or former employee of a cannabis business, as well as any labor organization, may submit a complaint to the ALRB alleging that an organization with which the cannabis business has entered into a labor peace agreement is not a bona fide labor organization.

    What if the ALRB determines that an entity is not a “bona fide labor organization”?

    If the ALRB determines that an entity is not a “bona fide labor organization,” the relevant labor peace agreement is null and void under state law.

    Additionally, the ALRB will notify DCC of its determination that the entity is not a “bona fide labor organization,” and DCC will promptly notify all licensees that have signed labor peace agreements with the same entity. DCC will offer each of those licensees a reasonable time period—which may not exceed 180 days—to enter into a new labor peace agreement with a bona fide labor organization.

    Related resources

    Form 9205: Labor Peace Agreement Notarized Statement

    An applicant for a commercial cannabis business that has not already entered into a labor peace agreement may use this form to complete the notarized statement. This must be submitted along with form DCC-LIC-027.

    Labor peace agreements on file

    DCC has a full or partial labor peace agreement (LPA) on file from the licensees listed in table format in the link above. Additional information can also be requested.