New York’s Marijuana Industry Unites Against Proposed Wage Board
A coalition of major players in New York’s marijuana industry has formed to oppose a recently passed bill that would establish a board to recommend minimum wages for cannabis workers. The Safe and Affordable Cannabis for New York association, comprising medical cannabis operators, farmers, processors, and retailers, is urging Governor Kathy Hochul to veto the legislation.
The coalition claims that the bill, backed by labor groups such as the AFL-CIO, ignores the economic realities facing cultivators in the industry. According to Joe Calderone, president of the Cannabis Farmers Alliance, the legislation would force many small, independent farmers to shut down due to the added costs. Calderone stated that farms already operate on thin margins, absorbing compliance costs and federal taxes exceeding 50%, while competing with the illegal market.
The establishment of a minimum wage would lead to increased costs for consumers, who could find lower prices from illegal sources. The coalition is seeking to amend the bill by adjusting the composition of the board, stripping it of its broad subpoena powers, and making its recommendations subject to a gradual timeline. They also want a state tax credit for overtime pay, similar to what is provided to New York farmers.
The coalition hopes that Hochul will consider the potential consequences of the bill and work with them to find a more sustainable solution for the industry.
