Verano is challenging New Jersey’s cannabis labor peace agreement rule, arguing the state cannot force companies to sign union deals as a condition for keeping licenses.
WEBDESK – HAJIRA IRFAN – NJNEWSLINE
A major New Jersey cannabis operator is taking legal action against the state over a controversial rule requiring cannabis companies to maintain labor agreements with unions.
Verano, which operates four ZenLeaf cannabis dispensaries in New Jersey, filed a lawsuit against the state’s Cannabis Regulatory Commission (CRC), claiming the requirement violates federal labor law and exceeds the state’s authority.
Verano Challenges New Jersey’s Union Agreement Requirement
The company argues that New Jersey cannot force cannabis businesses to sign labor peace agreements as a condition for obtaining and maintaining their operating licenses.
These agreements require companies to remain neutral during union organizing efforts and prevent them from making negative public statements about unions.
Verano said it did not voluntarily accept these terms and would not have signed any labor peace agreement if the state had not made it mandatory.
The lawsuit states that the company agreed to the deal only because it believed it was required under New Jersey’s cannabis regulations.
Company Warns Losing License Could Hurt Workers
Verano claims the Cannabis Regulatory Commission has a history of enforcing the labor agreement requirement and penalizing companies that fail to comply.
The company pointed to the CRC’s 2025 decision to fine Curaleaf, another major cannabis operator, $610,000 for failing to maintain its required labor peace agreement. Verano argues that losing its license could force it to shut down operations, eliminate jobs, and damage the business relationships it has built in New Jersey. The company currently employs around 300 workers across its operations.
Verano Operates Multiple Cannabis Facilities Across NJ
The company runs ZenLeaf dispensaries in Elizabeth, Lawrence Township, Neptune Township, and Mount Holly.
It also operates a cultivation and processing facility in Branchburg. One of Verano’s dispensary licenses in Neptune Township was scheduled for renewal on Aug. 1, while the Mount Holly location’s renewal is expected in November. The company’s current labor agreement is with Local 360 of the United Food and Commercial Workers Union.
Lawsuit Follows Curaleaf’s Legal Battle
Verano’s lawsuit comes after a similar legal challenge filed by Curaleaf against New Jersey’s Cannabis Regulatory Commission. In May, a federal judge allowed Curaleaf’s case to move forward after rejecting the state’s attempt to dismiss the lawsuit.
Verano is using that decision as a key argument, claiming federal labor law may prevent states from imposing mandatory union agreements on businesses.
Company Asks Court to Block License Penalties
Verano is asking a federal judge to rule that New Jersey cannot deny, suspend, revoke, or refuse to renew cannabis licenses because of labor peace agreement issues.
The company also wants its existing agreement with Local 360 to be considered voidable, which could allow it to end the union relationship.
The Cannabis Regulatory Commission and the union named in the lawsuit have not publicly commented on the case.
New Jersey’s Cannabis Labor Policy Faces Legal Review
New Jersey introduced labor peace agreements into the cannabis licensing process in 2018, when companies received additional points for signing such agreements during license applications.
The requirement later became part of the state’s cannabis regulations before recreational cannabis sales began in April 2022. Now, Verano’s lawsuit adds another legal challenge to New Jersey’s cannabis labor rules, with courts set to determine whether the state’s requirements conflict with federal labor protections.
