Federal Judge Rejects Curaleaf Bid to Halt New Jersey Marijuana Labor Peace Rule, But Says Challenge Is Likely to Succeed
- Judge Michael A. Shipp denied Curaleaf’s request for a preliminary injunction, allowing New Jersey’s labor peace requirement to remain in effect during the ongoing lawsuit.
- Curaleaf is challenging New Jersey’s labor peace agreement mandate, arguing it conflicts with federal labor law and is contesting penalties for failing to maintain a valid agreement.
- The dispute centers on Curaleaf’s expired labor peace agreement with UFCW Local 360, which state regulators say was not properly extended, leading to a $610,000 fine for 122 days without a valid agreement.
- The case continues, with the court’s ruling permitting enforcement of the labor peace rule while the broader legal challenge against the New Jersey Cannabis Regulatory Commission proceeds.
Judge Michael A. Shipp of the U.S. District Court for the District of New Jersey has denied Curaleaf’s request for a preliminary injunction, finding that the company had not shown the immediate, irreparable harm needed to justify blocking enforcement while the lawsuit continues. However, the judge also found tha
The decision does not end the case or determine whether New Jersey’s labor peace requirement is lawful. Instead, it allows the rule to remain in effect as Curaleaf continues its challenge against the New Jersey Cannabis Regulatory Commission.
Curaleaf filed the lawsuit in October, arguing that New Jersey’s labor peace agreement requirement conflicts with federal labor law. The company is also challenging penalties imposed by state regulators over its alleged failure to maintain a valid agreement.
Under New Jersey law, most licensed marijuana businesses must maintain a labor peace agreement as an ongoing condition of licensure. Microbusinesses are exempt from the requirement.
The dispute stems from Curaleaf’s labor peace agreement with UFCW Local 360, which was signed on April 6, 2022, and expired three years later. State regulators said Curaleaf did not provide proof that the agreement had been extended or replaced.
The NJ-CRC issued a notice of violation in May 2025, followed by a $610,000 penalty in August. Regulators said the penalty was based on Curaleaf failing to maintain a valid labor peace agreement for 122 days, calculated at $5,000 per day.
Curaleaf has argued that the requirement interferes with rights protected under the National Labor Relations Act and threatens its ability to maintain marijuana licenses in the state. Regulators have defended the requirement as part of New Jersey’s licensing system for the legal marijuana market.
The case remains pending, but Shipp’s ruling means the labor peace requirement can continue to be enforced while the broader legal challenge plays out.