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General Assembly Substitute Bill No. 6842
January Session, 2025
AN ACT CONCERNING THE MINIMUM FAIR WAGE AND PERSONS
EMPLOYED AT CANNABIS ESTABLISHMENTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 21a-421d of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective October 1, 2025): 2
(a) As used in this section: 3
(1) "Bona fide labor organization" means (A) with respect to a labor 4
peace agreement entered into on or before September 30, 2023, a labor 5
union that (i) represents employees in this state with regard to wages, 6
hours and working conditions, (ii) whose officers have been elected by 7
a secret ballot or otherwise in a manner consistent with federal law, (iii) 8
is free of domination or interference by any employer and has received 9
no improper assistance or support from any employer, and (iv) is 10
actively seeking to represent cannabis workers in the state, and (B) with 11
respect to a labor peace agreement entered into on or after October 1, 12
2023, a labor union that is included on the list established and 13
periodically updated by the department pursuant to subsection (b) of 14
this section; 15
(2) "Labor peace agreement" means an agreement between a cannabis 16
establishment and a bona fide labor organization under this section 17 Substitute Bill No. 6842
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pursuant to which the owners and management of the cannabis 18
establishment agree not to lock out employees and that prohibits the 19
bona fide labor organization from engaging in picketing, work 20
stoppages or boycotts against the cannabis establishment; 21
(3) "Cannabis establishment", "dispensary facility" and "producer" 22
have the same meanings as provided in section 21a-420; and 23
(4) "Licensee" means a cannabis establishment licensee, dispensary 24
facility or producer. 25
(b) (1) Not later than October 1, 2023, the department shall establish 26
and periodically update a list of labor unions that (A) are actively 27
seeking to represent cannabis workers in this state, and (B) satisfy the 28
criteria established in subdivision (2) of this subsection. 29
(2) Not later than September 1, 2023, the department shall accept 30
applications for inclusion on the list established pursuant to subdivision 31
(1) of this subsection. Any labor union that wishes to be included on 32
such list shall submit an application to the department, in a form and 33
manner prescribed by the department. As part of such application, such 34
labor union shall attest, under penalty of false statement, that such labor 35
union: 36
(A) Is actively seeking to represent cannabis workers in this state; 37
(B) Satisfies at least two of the following criteria: 38
(i) Such labor union represents employees in this state with regard to 39
wages, hours and working conditions; 40
(ii) Such labor union has been recognized or certified as the 41
bargaining representative for cannabis employees employed at cannabis 42
establishments in this state; 43
(iii) Such labor union has executed one or more collective bargaining 44
agreements with cannabis establishment employers in this state, which 45
agreement or agreements remain effective on the date of such labor 46 Substitute Bill No. 6842
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union's application under this subsection; or 47
(iv) Such labor union has spent resources as part of one or more 48
attempts to organize and represent cannabis workers employed at 49
cannabis establishments in the state, which attempt or attempts remain 50
active on the date of such labor union's application under this 51
subsection; 52
(C) Has filed the annual report required by 29 USC 431(b) for the 53
three years immediately preceding the date of such labor union's 54
application under this subsection; 55
(D) Has audited financial reports covering the three years 56
immediately preceding the date of such labor union's application under 57
this subsection; 58
(E) Was governed by a written constitution or bylaws for the three 59
years immediately preceding the date of such labor union's application 60
under this subsection; 61
(F) Is affiliated with regional or national associations of unions, 62
including, but not limited to, central labor councils; 63
(G) Is overseen by officers elected by secret ballot or otherwise in a 64
manner consistent with federal law; 65
(H) Is free from domination or interference by any employer; and 66
(I) Has not received any improper assistance or support from any 67
employer. 68
(3) In the event of any change in the information that a labor union 69
submits to the department under this subsection, the labor union shall 70
correct or update such information, in a form and manner prescribed by 71
the department, not later than thirty days after the date of such change. 72
(4) In the event that a labor union no longer satisfies the criteria 73
established in subdivision (2) of this subsection, the labor union shall 74 Substitute Bill No. 6842
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notify the department, in a form and manner prescribed by the 75
department and not later than thirty days after such labor union no 76
longer satisfies such criteria, that such labor union no longer satisfies 77
such criteria. The department shall remove such labor union from the 78
list prepared pursuant to subdivision (1) of this subsection. 79
(c) Any provisional cannabis establishment licensee, dispensary 80
facility or producer shall, as a condition of its final license approval, 81
license conversion or approval for expanded authorization, 82
respectively, enter into a labor peace agreement with a bona fide labor 83
organization. Any such labor peace agreement shall contain a clause 84
that the parties agree that final and binding arbitration by a neutral 85
arbitrator will be the exclusive remedy for any violation of such 86
agreement. 87
(d) Notwithstanding the provisions of chapter 54, if an arbitrator 88
finds that a licensee failed to comply with an order issued by the 89
arbitrator to correct a failure to abide by such agreement, upon receipt 90
of a written copy of such finding, the department shall suspend the 91
licensee's license without further administrative proceedings or formal 92
hearing. 93
(e) A licensee or bona fide labor organization may commence a civil 94
action in the Superior Court in the judicial district where the facility 95
used in the operation of a cannabis establishment is located to enforce 96
the arbitration award or to lift the license suspension. The license shall 97
remain suspended until such time that: (1) The arbitrator notifies, or 98
both of the parties to the arbitration notify, the department that the 99
licensee is in compliance with the arbitration award; (2) both of the 100
parties to the arbitration notify the department that they have 101
satisfactorily resolved their dispute; (3) the court, after hearing, lifts the 102
suspension; or (4) the court, after hearing, orders alternative remedies, 103
which may include, but need not be limited to, ordering the department 104
to revoke the license or ordering the appointment of a receiver to 105
properly dispose of any cannabis inventory. Except as provided in 106
subsection [(f)] (g) of this section, during such time that a license is 107 Substitute Bill No. 6842
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suspended pursuant to this section, the licensee may engage in conduct 108
necessary to maintain and secure the cannabis inventory, but may not 109
sell, transport or transfer cannabis to another cannabis establishment, 110
consumer or laboratory, unless such sale or transfer is associated with a 111
voluntary surrender of license and a cannabis disposition plan 112
approved by the commissioner. 113
(f) In no event shall the Labor Commissioner recognize, as part of the 114
minimum fair wage, gratuities for persons employed at a cannabis 115
establishment, dispensary facility or producer. Any cannabis 116
establishment, dispensary facility or producer who pays or agrees to 117
pay an employee less than the minimum fair wage shall be in violation 118
of section 31-60. For purposes of this subsection, "minimum fair wage" 119
has the same meaning as provided in section 31-58. 120
[(f)] (g) A producer, cultivator or micro-cultivator may sell, transport 121
or transfer cannabis to a product packager, food or beverage 122
manufacturer, product manufacturer, dispensary facility or hybrid 123
retailer for the sale of products to qualified patients or caregivers, which 124
products shall be labeled "For Medical Use Only". 125
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2025 21a-421d
LAB Joint Favorable Subst.