Cannabis Law Perspectives

Legal insights into california's cannabis industry

Labor Peace Agreement Requirement for Cannabis Operations in California as required by AB 1291
Labor & Employment
Ken Stratton

Getting “Real” About Labor Peace Agreements: Assembly Bill No. 1291 And Its Implications

Earlier this month, Governor Newsom signed into law Assembly Bill No. 1291 (“A.B. 1291”), which amends Section 26051.5 of California’s Business & Professions Code to strengthen California’s pro-union requirements for cannabis companies. Specifically, the new law, which will go into effect on January 1, 2020, rewrites the express union organizing commitments cannabis companies must make as part of their state

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U.S. Supreme Court through its decision in Lamps Plus, Inc. v. Varela confirms that arbitration agreements should be taken seriously.
Disputes & Litigation
Ken Stratton

Lamps Plus, Inc. v. Varela Confirms (Yet Again) That Arbitration Agreements Should Be Taken Seriously

Recently the U.S. Supreme Court rendered its decision in Lamps Plus, Inc. v. Varela, 587 U.S. ____ (2019), reported at 2019 WL 1780275, a case with at least three striking lessons: Lesson #1 Because arbitration agreements are formed by contract through mutual consent, parties negotiating arbitration agreements should pay very careful attention to the specific words used in the contract.

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Section 26065 of MAUCRSA (Cal. Bus. & Prof. Code § 26065), which provides simply that employees “engaged in the cultivation of cannabis under this division shall be subject to Wage Order No. 4-2001 of the Industrial Welfare Commission.
Labor & Employment
Ken Stratton

Cannabis Cultivator Beware: A Wage & Hour Trap for the Unwary

Sometimes California’s cannabis laws can be surprising, even to the experts. Our firm came across one example of this recently: Section 26065 of MAUCRSA (Cal. Bus. & Prof. Code § 26065), which provides simply that employees “engaged in the cultivation of cannabis under this division shall be subject to Wage Order No. 4-2001 of the Industrial Welfare Commission.” A Brief

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A Wage & Hour Primer for HR Managers of California Cannabis Businesses
Labor & Employment
Ken Stratton

A Wage & Hour Primer for HR Managers of Cannabis Businesses

We are offering the following observations so that HR managers in the cannabis field can better understand some of the rules that govern wage and hour requirements here in California. These rules are important because failure to follow them can expose employers (the operating cannabis companies) and sometimes their executives to significant civil fines and penalties and, in the case

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Phantom Stock For Cannabis Businesses
Corporate & Transactional
Ken Stratton

Phantom Stock – Why Private Cannabis Companies Should Take Note

Privately held cannabis companies might want to give serious consideration to awarding their employees “phantom stock” rather than equity options. Working so close to Silicon Valley and its “option holder” millionaires, can make it easy for California entrepreneurs to forget the many challenges private companies face when awarding equity options to employees. Obviously, private companies lack a public market for

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