Seattle, Washington is making new moves in cannabis social equity, as a new law went into effect on July 19 nearly a year after it was initially proposed by Mayor Bruce Harrell, The Center Square reports.
Mayor Harrell and Councilmember Teresa Mosqueda sponsored the bill in council and pitched the law, Council Bill 120393, as part of a collection of additional legislation aimed to improve equity within the cannabis industry.
According to the bill summary, the legislation requires cannabis business employers to take certain actions to reduce job insecurity due to changes in ownership.
The legislation includes key protections, ensuring that outgoing employers undergoing a change in ownership must provide a preferential hiring list to the incoming employer and that outgoing employers must also post notice of the change of ownership at the job site.
Incoming employers are required to hire from the preferential hiring list for 180 days, and if an employee accepts a job offer, the employer must retain the employee for at least 90 days. They can only discharge the employee for just cause during this time period. Incoming employers are also required to continue to post notice of change in ownership for 180 days. The list is based on the concept of “seniority,” aiming to provide reinforcement for employees should a management shakeup arise.
The law says seniority is “determined by the employee’s seniority within their most recent job classification.” However, the law does not lay out guidance for what the job classification is based upon.
Additionally, employers are required to provide a notice of rights afforded under the ordinance and a written notice to employees of the names used by any associated integrated enterprises. Employers must also maintain records documenting compliance for a three-year period. The legislation also grants the Office of Labor Standards the authority to provide rulemaking, outreach and enforcement related to the new labor standard.
The law deems that anyone who works for any licensed dispensary in any capacity is entitled to the protections.
According to language within the bill, “It is estimated that [Office of Labor Standards] will incur approximately $21,000 in one-time implementation costs to support initial implementation activities, including translation and interpretation services and other rulemaking costs and activities, and outreach, communication, and educational activities for the initial outreach to those impacted by the ordinance. In addition, OLS will have ongoing annual costs of approximately $4,900.”
Advocates praised the passing of the new law as a major step in protecting the rights of cannabis industry employees.
Cody Funderburk, a cannabis industry professional, activist and former member of local cannabis union UFCW 3000 called the legislation “monumental” in a press release, adding that the effects of the legislation will work to improve job security for thousands of employees across Washington State’s cannabis industry.
“Workers deserve the peace of mind of knowing that their livelihoods will be safe as the cannabis industry continues to rapidly shift and evolve,” Funderburk said.
Steven Marchese, director of the OLS, reinforced that the office is committed to living up to the new standard, providing the needed outreach, education and enforcement it requires.
“The Cannabis Employee Job Retention Ordinance provides protections for workers in this industry that will help provide a stable workplace, stronger workforce, and contribute to a better overall economy for Seattle,” Marchese said.
The final rules and time periods for the legislation were decided earlier in July.
The law reflets Mayor Harrell and Seattle’s commitment to improving equity within the cannabis industry and to clarify matters addressed directly by the ordinance, like provisions related to preferential hiring, offer of employment and discharge of employment for just cause.
