New Jersey recently enacted legislation expanding labor protections for employees working in the state’s licensed cannabis industry. The new law is aimed at addressing long-standing gaps in worker coverage created by the intersection of federal labor law and cannabis-related employment, particularly for employees whose work has historically fallen outside traditional federal protections.

A central feature of the legislation is the extension of collective bargaining rights and unfair labor practice protections to cannabis employees who are not covered by the federal National Labor Relations Act. By doing so, the law establishes a state-level framework governing labor relations in the cannabis sector, bringing these employees more closely in line with workers in other private industries.

The new law authorizes state labor agencies to oversee representation matters involving cannabis employees, including the recognition of employee representatives and the administration of collective bargaining units. Employers are required to provide employee contact information in connection with representation efforts and to engage in good-faith bargaining once a representative has been properly certified.

The new law also expands the scope of prohibited unfair labor practices applicable to cannabis employers, including conduct that interferes with employees’ rights to organize, participate in collective activity, or engage in negotiations over terms and conditions of employment. Enforcement authority is vested in state agencies, which may investigate complaints and impose remedies or penalties for noncompliance.

In addition, the new law creates or reinforces dispute resolution mechanisms designed to address bargaining impasses and labor disagreements in the cannabis industry. These provisions are intended to promote labor stability while providing structured processes for resolving conflicts between employers and employees.

As the law moves toward implementation, cannabis businesses operating in New Jersey should evaluate whether existing employment practices, management training, labor policies, and compliance strategies need to be updated. Employers should also consider how these changes may affect workforce planning and labor relations going forward. If you have any questions regarding the above, please contact Justin Calta or Michael Grohs of Saiber LLC’s cannabis law practice.