Hochul opposes wage board for cannabis businesses
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There will be no wage board for cannabis businesses in New York state.
Gov. Kathy Hochul recently signed legislation that would have repealed labor peace agreements required for cannabis businesses as well as creating a Cannabis Wage Industry Board. But, that signature won’t come with the wage board after Hochul and legislative leadership agreed to chapter amendments that will be brought to the legislative floor after the new session starts in January.
The decision affects five licensed dispensaries in Jamestown: Lifted Dispensary, 320 N. Main St.; Yeti Greenery, 607 W. Third St.; Liquid Monkey, 177 Fluvanna Ave.; Bob Natural, 1067 E. Second St.; and Buzz WNY, 34 Scott St.
Republicans were largely opposed to the legislation (A.11562/S.10643) which passed by a 98-34 margin in the state Assembly, with Assemblyman Andrew Molitor, R-Westfield, and Joe Sempolinski, R-Canisteo, voting against. The Senate vote was 37-23 with Sen. George Borrello, R-Sunset Bay, voting against. Legislative approval wasn’t entirely along party lines. Sen. Liz Krueger, D-New York City, joined with several Republicans who opposed the creation of the wage board. Krueger has been one of the most vocal supporters of the original Marijuana Regulation and Taxation Act and has debated several pieces of marijuana-related legislation with Borrello over the past few legislative sessions.
“The bill, as passed, would create uncertainty in the industry by imposing a burdensome reporting requirement on applicants, and by creating a wage board that could raise costs for licensees and drive consumers to the illicit market,” Hochul wrote in a memorandum explaining her decision to adjust the legislation, according to the Albany Times Union. “This further amendment would preserve the repeal of the labor for peace agreement requirement in full, while removing the wage component of the bill.”
Wage boards were used in the past for farm workers and fast food workers. The farm workers’ wage board lowered the overtime pay threshold from 60 hours to 40 hours, with a phased schedule from 2020 through 2032. It also set a $17 an hour minimum wage with farms required to provide 24 consecutive hours of rest each week. The fast food business wage board set a minimum wage of $17 an hour in New York City, Long Island and Westchester County with the rest of the state’s fast food wages set at $16 per hour. The hours apply to limited-service businesses that are part of a chain with more than 30 locations nationally.
Those experiences created concern among some legislators and cannabis business groups that similar wage board results could hurt an emerging business sector while also potentially leading to price increases that would drive customers to use illegal marijuana from street dealers rather than purchasing marijuana products from state-licensed cannabis stores.
Hochul’s negotiated approach comes at the same time a federal lawsuit challenging the labor peace agreements is winding its way through the Southern District of New York federal court. Hybrid NYC LLC, a “justice-involved” adult-use retail dispensary, sued state cannabis regulators arguing that mandating labor peace agreements violates the National Labor Relations Act, which gives federal law exclusive authority over private-sector labor relations and infringes on the company's First Amendment free speech rights by forcing employers to take a “neutral” stance on union organizing. The suit also objects to requirements to share employee contact information and handle disputes through private arbitration instead of the National Labor Relations Board.
The judge in the case had previously rejected the state's motion to dismiss the lawsuit and ruled that the dispensary had standing to sue while also ruling the business shouldn't have to renew a labor peace agreement while the court case was ongoing. The judge in the case passed away in late October 2026, leaving the case in limbo for the time being.
Hochul's agreement with legislators means cannabis businesses won't be required to enter into or maintain labor peace agreements as a condition of obtaining or retaining cannabis licenses, certifications or registrations. Employers that have already entered into labor peace agreements remain governed by their own terms, including any ongoing obligations, notice requirements or termination provisions.