Federal court blocks New Jersey cannabis union mandate

A federal court ruling struck down state-mandated labor peace and collective bargaining requirements for cannabis licensees, ruling they are preempted by the National Labor Relations Act and could reshape licensing practices across jurisdictions. Separately, in Virginia, a court declined to block a new law capping hemp product THC at 2 milligrams, removing an existing CBD-to-THC ratio exception and prompting frustration from hemp businesses. The decision cited that the rule was enacted in the public’s best interest, though industry advocates criticized the rushed legislation and warned of substantial economic harm. Lawyers and industry groups are now urging lawmakers to convene a special session to address access to products and to reconsider the regulatory framework as Virginia moves toward a retail cannabis market in 2027. The cases illustrate the broader tension between evolving federal interpretations of labor rights and the rapid, overlapping changes in state hemp and cannabis laws that can upend business models. As the regulatory environment continues to evolve, industry voices say more clarity and relief are needed to prevent widespread financial damage as markets transition.