Category: Employment Issues

High Stakes and Material Changes in the Bay State: Senate Bill No. 2722 vs. House Bill No. 4160

Post author By Blank Rome LLP
Post date November 18, 2025

Lauren Medeiros Forster —

There were several material changes relating to strategy, compliance, and deal‑making advanced by Massachusetts Senate Bill No. 2722 (“S. 2722”) on November 13, 2025. Below is a short summary of what you need to know about the Senate’s rewrite and meaningful reshaping of several House‑backed ideas (under House Bill No. 4160 (“H. 4160”)) for changing the legal regime of cannabis in the Commonwealth.

1. Employee Stock Ownership Plans

Employee stock ownership plans (“ESOPs”) are here to stay. Both bills tell the Massachusetts Cannabis Control Commission (“CCC”) to set up clear procedures to allow the sale of a business to employees via an ESOP and to exclude a trustee acting solely for an ESOP during or after a sale when counting toward cannabis license caps under the Massachusetts cannabis laws. That part did not change, which is a positive result for the Commonwealth. The proposed changes to the current law enable succession planning, retention, and worker‑ownership options for operators and investors without tripping license caps and also improve exit/liquidity paths for owners. This also means there would be no caps on the number of licenses an ESOP can own.

Tags Massachusetts

Employment Issues

The Cannabis Labor Crossroads: Historic Strikes, Labor Peace Agreements (“LPAs”), and What Comes Next

Post author By Blank Rome LLP
Post date October 16, 2025

Gustav Stickley V —

Two ongoing strikes in the cannabis industry—one in Michigan and one in Pennsylvania—have become the longest work stoppages in the industry’s history, arriving just as more states integrate labor peace or collective bargaining requirements into the licensing process and ongoing compliance. The converging pressures of the market, regulatory requirements, and national labor policy are reshaping the way cannabis operators manage their workforce.

The Two Longest Strikes in Cannabis History

The strikes at Exclusive Brands in Ann Arbor, Michigan, and at Green Thumb Industries’ RISE dispensary in York, Pennsylvania, now stand as the longest in the legal cannabis market. While both actions reflect shared themes—demands for better wages, a voice in the workplace, and concerns about bargaining conduct—they are unfolding in starkly different market contexts and with different strategic aims.

In Michigan, workers at Exclusive Brands walked out after the company declined to recognize a union election and amid an unfair labor practice charge tied to the firing of a union supporter. Organizing efforts there have focused on public visibility and testing the legal contours of federal jurisdiction over cannabis workplaces. In Pennsylvania, all unionized workers at the RISE York dispensary struck following a breakdown in contract talks, pressing for wages aligned with agreements achieved elsewhere. The Pennsylvania action is a textbook leverage strike, not unlike strikes in other industries, designed to interrupt operations and force bargaining movement.

Market conditions accentuate the divide. Michigan’s open-license adult-use market has experienced oversupply and price compression, leaving thin margins that complicate wage gains even when labor organizing succeeds. Pennsylvania, by contrast, remains a limited-license, medical-only market that supports strong unit economics for multistate operators.

Tags Michigan, Pennsylvania, striking, union employees

Banking and Restructuring Controlled Substance Act Employment Issues Legislation Meet Blank Rome Mergers and Acquisitions Regulatory Compliance

Turning Over a New Leaf: How Cannabis Receiverships Can Cultivate a Stronger Future

Post author By Blank Rome LLP
Post date September 10, 2025

Lauren Medeiros Forster —

It is no secret that the cannabis industry has been on a wild ride lately, especially in mature markets. Many operators are feeling the pressure, and they are not alone. Let us break down the current landscape, why it is tough out there, and how receiverships and distressed sales might actually be a positive move for struggling cannabis companies.

Many developed cannabis markets are facing serious challenges. Inflation and a shaky economy are making it harder for businesses to stay afloat (regardless of industry type), on top of market saturation that has caused cannabis prices to drop, and tight profit margins for businesses in the more established marijuana states. This is compounded with the harsh effects of tax burdens due to 280E—where cannabis companies are unable to deduct otherwise established business expenses from gross income as a result of the federal illegality of cannabis in the United States—and lack of liquidity from inability to access traditional debt financing and institutional equity markets. As a result, many cannabis companies are finding it difficult to pay their debts and keep the lights on. And because cannabis is still federally illegal in the United States, struggling cannabis operators are limited when it comes to utilizing federal bankruptcy mechanisms for relief.

But hope is not lost. Even in tough times, cannabis businesses along with their management, creditors, and investors, have found options to help their companies restructure and move forward. One of those is a state-level receivership.

Tags distressed sale, receivership

Controlled Substance Act Employment Issues Legislation Meet Blank Rome Mergers and Acquisitions Regulatory Compliance

Welcome to Cannabis Industry Insights

Post author By Blank Rome LLP
Post date June 20, 2024
Sticky post

Frank A. Segall, Scott H. Moskol, and Max M. Borg —

Whether you are a plant-touching operator or an ancillary business, lender, or investor, Blank Rome’s Cannabis Industry Insights blog is your go-to resource for the cannabis industry.

Authored by our trailblazing Cannabis practice attorneys, the Cannabis Industry Insights blog explores the rapidly evolving legal, regulatory, and business landscape, helping those in the sector stay ahead of the curve and seize industry opportunities. Our cannabis team was one of the first in the United States to utilize its extensive corporate and finance experience to support the cannabis industry, and has received numerous accolades, including Law360’s prestigious 2023 Cannabis Practice Group of the Year.

Through our blog, we will continue to explore issues that directly impact the cannabis industry. With the announcement of the rescheduling of cannabis from Schedule 1 to Schedule 3 under the Controlled Substance Act, we are optimistic about new and expanding opportunities for industry players. In addition to interviews with industry leaders, the blog will cover such topics as the impact of rescheduling on 280E taxation; legal and regulatory compliance concerns; the landscape for mergers and acquisitions; legislative efforts; banking, insurance, and other business issues; capital markets; workouts and restructurings impacting the industry; the growing importance of e-commerce, fintech, and regtech; debt and equity financings; labor and employment issues in light of unionization efforts; data privacy and security; and employee stock ownership plans (“ESOPs”); among other areas that are relevant to the underpinnings of the industry.

Our goal is to help cannabis businesses survive and thrive in this highly regulated environment, as well as to assist new participants in entering this exciting industry. Subscribe below to receive our timely content:

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