Conditional Adult Use Retail Dispensary (“CAURD”) license applicants and those applicants seeking unconditional licenses in New York must comply with the New York State mandate and enter into, maintain and comply with a Labor Peace Agreement (“LPA”) with a bona-fide labor union. However, an LPA is not required to apply for a CAURD license, but selected CAURD applicants will be required to enter into an LPA prior to final license award. If applicants fail to do so, they will not be able to legally grow, distribute or sell cannabis products in the State of New York.
State-mandated cannabis industry LPAs are not new to New York, as the licensees in the state’s medical cannabis market are already required to sign them. The Marijuana Regulation and Taxation Act (“MRTA”) has since expanded LPA requirements to the adult-use market. Any business applying for a license under the MRTA, regardless of size or number of workers, must demonstrate they have a signed LPA to receive a license and maintaining an LPA is an ongoing condition of licensure after the initial license has been awarded.
What is a labor peace agreement?
New York’s law defines LPAs as agreements between an entity (employer) and a
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