TRENTON, New Jersey — One of New Jersey’s largest cannabis operators is challenging a state requirement that companies maintain agreements with labor unions to keep their business licenses.
Verano, which operates four Zen Leaf dispensaries and a cultivation facility, filed a federal lawsuit against the Cannabis Regulatory Commission and United Food and Commercial Workers Local 360. The company argues that New Jersey’s mandatory labor peace agreements conflict with the federal National Labor Relations Act.
The agreements require Verano to remain neutral during union-organizing campaigns and restrict negative statements about the union. Verano says it accepted those conditions only because refusing could jeopardize licenses supporting roughly 300 jobs.
The company wants a judge to prevent regulators from denying, suspending or refusing to renew its licenses over the mandate. It also seeks permission to void its existing agreements with Local 360.
Verano’s case follows a similar lawsuit from Curaleaf, which was fined $610,000 in 2025 over alleged noncompliance. A federal judge recently allowed Curaleaf’s challenge to continue and expressed concern that federal labor law may preempt New Jersey’s requirement, although the mandate has not been permanently invalidated.
Labor peace agreements are intended to protect organizing efforts and prevent work disruptions. The lawsuit could determine whether New Jersey may attach those worker protections to cannabis licenses.
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