Politics
Marijuana Businesses Ask New York Governor To Veto Bill On Minimum Wage For Industry Workers
A coalition of New York marijuana businesses are asking the state’s governor to veto legislation that would create a new Cannabis Wage Board charged with recommending minimum hourly wages for industry workers.
The proposal would “create significant uncertainty for operators at a time when many are finally beginning to find their footing after years of regulatory delays, capital constraints, and continued competition from the illicit market,” an action alert sent by the Cannabis Association of New York (CANY) on Tuesday.
“It poses particular risk to the small, equity businesses that are the backbone of our industry,” the group warned.
The legislation, S10643 from Sen. Jessica Ramos (D) and A11562 from Assemblymember Harry Bronson (D), was passed by both chambers of the legislation in June and is on the way to Gov. Kathy Hochul (D).
The proposal would create a three-member Cannabis Wage Board, with one member being a representative of the state’s licensed marijuana industry, one representing the New York State AFL-CIO and another being a member of the general public who is selected by the state labor commissioner to serve as chair of the new body.
The board would issue a report to the governor and legislature with recommendations on minimum hourly wages for cannabis industry workers.
“The report shall include specific recommendations for workers in each of the following areas: cultivation; processing and packaging; distribution; and retail and delivery,” the legislation says. “The board shall have the discretion to include specific recommendations for additional classifications of cannabis industry worker, and an industry-wide minimum wage for workers not captured within any specific classification, and shall have the discretion to determine that wages in the industry are adequate.”
Before issuing its report, the board would be required to hold at least three public hearings and could “consult with cannabis employers, cannabis workers, and their respective representatives, in the occupation or occupations involved, and with such other persons, as it shall determine,” the legislation says.
The legislation would also eliminate provisions from current law concerning labor peace agreements that marijuana businesses have been required to enter into with unions representing workers.
Another section of the bill would require marijuana business license applicants to provide details on their “full ownership structure” and any management service agreements they are party to, as well as information on compensation and scheduled hours for each paid position.
A justification memo attached to the bill says its provisions are aimed at “helping to ensure workers in the industry are treated fairly.”
But CANY has concerns.
“Legal sales are growing. Enforcement against illegal operators is gaining momentum. The Office of Cannabis Management is finally stabilized,” the action alert from the group says. “This is not the time to introduce another layer of uncertainty that could increase costs, make it harder for businesses to compete, and ultimately push consumers back toward the illicit market.”
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In March, the governor marked the five-year anniversary of adult-use marijuana legalization in New York, highlighting $3.3 billion in retail sales, the opening of more than 600 licensed cannabis shops and achievements in promoting social equity in the industry while taking steps to mitigate the illicit market.
In May, New York marijuana officials began accepting applications from licensed dispensaries that want to host temporary cannabis farmers’ markets and pop-up events, known as “Cannabis Showcase Events.”
In January, meanwhile, New York regulators released a set of reports providing a 2025 end-of-year status update on the evolution of the state’s medical and adult-use marijuana markets—touting record sales, revenue hauls for state coffers, licensing approvals, equity initiatives and more.
The OCM annual report also notes that Hochul signed legislation into law that expands the state’s medical cannabis program by improving patient access and “updating the program framework to better meet patient needs statewide.”
Also this year, New York senators approved a bill related to reciprocity for out-of-state medical marijuana patients and the availability of pre-rolled joints in the medical cannabis market—even though the state has already enacted those reforms separately.
In February, the sponsor of the bill separately introduced legislation that would allow New York liquor and wine stores to obtain a permit to sell low-dose cannabis-infused drinks at their businesses.
Also, the governor in February signed legislation into law that revises zoning requirements for licensed marijuana businesses, granting more flexibility to retailers located within certain distances of schools and places of worship.
