The cannabis rules that changed this week
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Key takeaways

  • Gov. Kathy Hochul signed S10643/A11562 on Oct. 28, 2026 as Chapter 369, with an approval memo tied to chapter amendments.

  • The bill's labor peace agreement repeal took effect immediately. A union agreement is no longer a written condition of New York cannabis licensing.

  • The planned Cannabis Industry Wage Board, which would have recommended minimum pay for cannabis workers, is set to be stripped out in an amendment next session.

  • A new rule requiring applicants to publish pay ranges, scheduled hours and full ownership is also expected to be dropped.

New York just changed the labor rules for its cannabis industry, and not in the way the bill's sponsors planned. The state ended its cannabis labor peace mandate, but the wage board lawmakers built to replace it is on its way out.

Gov. Kathy Hochul signed S10643 (A11562), sponsored by Sen. Jessica Ramos and Assemblymember Harry Bronson, on Oct. 28, 2026. Legislative records list it as Chapter 369 with Approval Memo 7. Under the chapter amendment process, she signed after agreeing with legislative leaders to change the law when lawmakers return.

What the New York cannabis labor peace bill did as passed

The Legislature passed the bill in early June 2026. It had two halves. Sections 1 through 7 strip labor peace agreement language out of the Cannabis Law, including the requirement that applicants and medical registered organizations enter into and keep a labor peace agreement with a union as an ongoing condition of their license or registration.

In exchange, the bill would have added a new Section 665 to the Labor Law creating a three-member Cannabis Industry Wage Board. A separate section would have required every applicant and renewal applicant to disclose its full ownership structure and any management service agreements, plus a public report on pay ranges and average scheduled hours for each job title.

Piece of the bill

As passed

After Hochul's deal

Labor peace agreement repeal

Effective immediately

Kept in full, in effect since Oct. 28, 2026

Cannabis Industry Wage Board

Effective Jan. 31, 2027; first hearing by March 1, 2027; report by Dec. 31, 2027

To be removed by amendment

Ownership, pay and hours disclosure

Effective Jan. 31, 2027

Expected to be removed, per the Times Union

What the wage board would have done

The board would have had one member from the licensed cannabis industry, one from the New York State AFL-CIO and a public chair picked by the labor commissioner. It needed at least three public hearings, with Spanish interpretation at each, plus subpoena power over witnesses and records.

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"The report shall include specific recommendations for workers in each of the following areas: cultivation; processing and packaging; distribution; and retail and delivery."

S10643/A11562, proposed Labor Law Section 665 (as passed, 2026)

The sponsor memo pitched the board as a replacement for labor peace that would help "ensure workers in the industry are treated fairly." The board also had the option to find that wages in the industry were already adequate.

Why Hochul pulled the wage board

In her approval memo, as reported by the Times Union, Hochul said the reporting requirement and wage board would create uncertainty, could raise costs for licensees and could push shoppers to the illicit market. She said the agreed amendment keeps the labor peace repeal in full while removing the wage piece.

The Times Union also reports that under the amendments, regulators could still give priority to applicants that have a labor peace agreement, but couldn't require one. Grower, processor and manufacturer groups praised the decision, Marijuana Moment reported.

What this means for operators

  1. Check your license conditions. The statute no longer requires a labor peace agreement, but watch for Office of Cannabis Management guidance on how it will handle existing agreements and pending applications.

  2. Read your own agreement. A signed labor peace agreement is a contract. Ask your lawyer whether it binds you on its own terms now that the license condition is gone.

  3. Applying soon? Ask first. If you're preparing a nursery or other application, confirm with OCM whether labor peace still appears in its application checklist.

  4. Watch the next session. The wage board and disclosure sections are still in the signed law until lawmakers pass the amendment. Track the chapter amendment bill when the Legislature returns.

What this means for cannabis workers

Labor peace agreements required licensed cannabis employers to take a neutral approach when a union tried to organize their workers. That license condition is gone. If you're already covered by a union contract, talk to your union rep about what this means for you.

The wage board was supposed to be the trade-off, with public hearings on cultivation, processing, distribution and retail pay. Without it, pay stays where the market sets it. If you want your voice heard, the amendment fight in the next session is the place to do it.

The bigger picture

A New York retail licensee is also challenging the labor peace requirement in federal court in the Southern District of New York. The Times Union reported that U.S. District Judge Alvin K. Hellerstein, who was handling the case, died on Wednesday.

Sources

This article is general information, not legal advice. Questions about license conditions go to the New York Office of Cannabis Management.

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The cannabis rules that changed this week
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