By Governor Rejects Cannabis Wage Board
Gov. Kathy Hochul has rejected key provisions of a bill that would have created a new Cannabis Wage Board charged with recommending minimum hourly wages for industry workers. The governor said she would pursue the chapter amendment process, which involves signing the bill only after reaching an agreement with lawmakers to enact changes at the start of the next session.
“New York’s cannabis industry is in its infancy, and licensees and employees are adapting to evolving market and legal developments,” Hochul said in a memo about her decision.
The governor argued the bill as passed would create uncertainty 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’s proposal removes portions of the measure that would have created a three-member Cannabis Wage Board, including members of the licensed marijuana industry and the New York State AFL-CIO. That board would have issued a report to the governor and legislature with recommendations on minimum hourly wages for cannabis industry workers.
The legislation, S10643 from Sen. Jessica Ramos (D) and A11562 from Assemblymember Harry Bronson (D), was passed by both chambers of the legislature in June.
What the Board Would Have Done
Under the measure, the board’s report would have included specific recommendations for workers in cultivation; processing and packaging; distribution; and retail and delivery. The board could have included recommendations for additional classifications of cannabis industry workers and an industry-wide minimum wage.
Before issuing its report, the board would have been required to hold at least three public hearings. It could have consulted with cannabis employers, cannabis workers, and their respective representatives.
Another section of the bill as passed would have required marijuana business license applicants to provide details on their full ownership structure and any management service agreements, as well as information on compensation and scheduled hours for each paid position.
Hochul wants to maintain provisions eliminating current law requirements that marijuana businesses enter into labor peace agreements with unions representing workers. Her agreement with lawmakers would also give the Cannabis Control Board discretion to prioritize adult-use license applications based on an applicant’s voluntary entry into a labor peace agreement.
“On the basis of this agreement, I am pleased to sign this bill into law,” she said.
Industry Groups Celebrate the Decision
Industry groups that had pushed the governor to reject the cannabis worker minimum wage proposal are celebrating the development. The Empire Cannabis Manufacturers Alliance, Association of New York Cannabis Processors and Cannabis Farmers Alliance praised Hochul for “stopping a wage board that would have driven up prices and imperiled the legal market her administration has spent years establishing,” The Times Union reported.
“Her decision safeguards the farmers who grow cannabis, the processors and manufacturers who turn it into safe, regulated products, and the workers whose livelihoods depend on this growing industry,” the groups said in a joint statement.
