Hello,
Overview
On June 1, 2026, a new bill was introduced in the New York State Legislature with significant implications for cannabis businesses and their labor practices. This bill, A11562/S10643, has passed both the Assembly and Senate and is awaiting delivery to Governor Hochul, who must act on it before the end of 2026.
Click here to read the bill.
In New York, bills at this stage have three standard outcomes. Governor Hochul can reject the bill through an outright veto or a pocket veto, meaning she takes no action on it within the required timeframe. She can also approve the bill in its current form. The third outcome is approval pursuant to chapter amendments, meaning she signs the bill on the condition that the Legislature incorporates her amendments at the beginning of the next legislative session.
It is no coincidence that this bill comes at a time when a pending legal challenge to the constitutionality of the labor peace agreement (LPA) requirement, Hybrid NYC LLC v. New York State Cannabis Control Board, is ongoing and stands a reasonable chance of invalidating LPA requirements in New York's cannabis industry and beyond. An adverse ruling for the state would reduce the Governor's incentive to veto the bill and increase pressure to sign it, while a favorable ruling could make the bill's LPA provisions moot. The progress of the litigation may ultimately influence the timeline for Governor Hochul to act.
What Changes?
Elimination of Labor Peace Agreement Requirements
The bill removes LPA mandates from the Cannabis Law, including the definition of "labor peace agreement," which is repealed entirely. Entering into an agreement with a union would no longer be a requirement for licensure or license renewal. While this reduces one compliance obligation, the LPA framework is replaced by several significant new requirements detailed below.
New Wage Board with Broad Authority
A three-member Cannabis Industry Wage Board will be empowered to recommend, and potentially establish, cannabis-specific minimum wages by sector above and beyond the state's general minimum wage. The board has broad discretion to create new worker classifications and an industry-wide minimum wage floor, with limited legislative guardrails.
The Wage Board would consist of one representative from the cannabis industry, one representative from the AFL-CIO, and one member appointed by the Commissioner of Labor. Decisions require a majority vote of all members, and two-thirds of the board constitutes a quorum. Given the board's composition, the single representative of a diverse industry ranging from small social equity operators to larger multi-site licensees would have limited ability to block recommendations on their own.
The Wage Board is authorized to hold public hearings and, in furtherance of its mandate, may administer oaths and exercise subpoena power. This means the board can compel witnesses to appear and require the production of records it deems necessary to carry out its duties.
Forced Public Disclosure
New language added to the Cannabis Law will require all license applicants and renewal applicants to submit their full ownership structure, disclosure of any management services agreements, and the full ownership structure of any company providing management services.
Cannabis businesses will also be required to submit the range of hourly and salaried wages for each job title, along with the average number of hours offered for each position. This information will be published on OCM's website.
Timeline
The bill establishes three key dates that may change if the bill is signed much later in the year:
January 31, 2027 – The Wage Board is convened, and the ownership, wage, and hours disclosure requirements for applicants and licensees take effect for businesses actively applying for or renewing a license.
March 1, 2027 – Deadline for the Wage Board to hold its first public hearing.
December 31, 2027 – Final report with recommended wages is due to the Governor and Legislature.
We will continue to monitor the status of this bill and keep you informed of any developments. Please do not hesitate to reach out with any questions.
