Court Holds Wage and Hour Law Applies to Marijuana Business


As a lot of Americans know, wage and hour laws assistance govern the wage prices an employer can spend and the hours for which an employer ought to compensate its personnel. The most properly-recognized wage and hour regulations apply to minimum wage laws and overtime laws. Even though one particular would feel these laws and regulations are relatively normal across the board for any sector, the burgeoning legalization of marijuana has led to a substantial grey location when it comes to suitable wage regulations. Not too long ago, on the other hand, a U.S. Appeals Court affirmed a selection that would make the wage and hour law applicable to the marijuana sector moving forward.

In Kenney v. Helix TCS Inc., No. 18-1105 (10th Cir. 2019), the 10th U.S. Court of Appeals in Colorado held federal law requiring workers be paid each a minimum wage and overtime applies to personnel operating in the marijuana sector. The selection comes as a lot of states have moved toward either decriminalizing or legalizing health-related and/or recreational use of marijuana and marijuana items. On top of that, the Court noted the protections of the Fair Labor Requirements Act (FLSA) really should apply to “all workers,” regardless of regardless of whether the organization they are operating for is illegal beneath federal law.

The ruling comes as the initial appellate opinion to address the challenge of suitable wage and hour requirements inside the marijuana sector. Other courts have held enterprises engaged in illegal or unlawful activities, such as gambling or employing illegal immigrants, really should nevertheless be topic to FLSA.

This selection comes just after Colorado-primarily based Helix TCS Inc., a organization that offers safety solutions to marijuana enterprises, believed its guards have been not topic to overtime regulations since they worked inside a federally illegal sector according to the federal Controlled Substances Act.

In the 10th Circuit’s selection, the court determined denying wage protection to these employed inside the marijuana sector would most likely encourage employers to engage in illegal markets and/or give them an unfair benefit more than other legal enterprises. In addition, the court also noted Congress has repeatedly amended the FLSA to exempt particular groups of workers and, now that list consists of these inside the marijuana sector.

Texas Employment Law Attorneys

Managing your workforce is a complicated and ever-altering challenge. Relationships amongst employers and personnel are frequently altering. Each Texas and federal law handle how employers ought to treat personnel, such as wage and hour law regulations. At MehaffyWeber, our seasoned attorneys have years of initial-hand expertise formulating sensible options to possible employment difficulties for substantial and tiny employers on a wide variety of employment law matters. If you think your organization could use legal guidance with regards to employment law, make contact with us now for extra details.


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