Senate Bill No. 352 introduces new regulations for labor peace agreements and establishes a minimum fair wage for employees at cannabis establishments in Connecticut. The bill repeals Section 21a-421d and replaces it with definitions for terms such as "bona fide labor organization," "labor peace agreement," and "cannabis establishment." It mandates that provisional cannabis establishments must enter into labor peace agreements with bona fide labor organizations to receive final license approval, which includes arbitration clauses for resolving disputes. Additionally, the bill requires the Department to maintain a list of qualifying labor unions to represent cannabis workers.

Importantly, the bill specifies that gratuities will not be considered part of the minimum fair wage for employees at cannabis establishments, dispensaries, or producers, ensuring that any establishment paying below the minimum wage will be in violation of wage laws. The existing "tip credit" law remains unchanged, allowing certain employers in other industries to pay less than the minimum wage if tips compensate for the difference. The effective date for these provisions is set for October 1, 2026, and the bill is anticipated to have no fiscal impact on the state or municipalities, as it aligns with current Labor Department practices. The Labor and Public Employees Committee has favorably reported the bill with a vote of 9 in favor and 4 against.

Statutes affected:
Raised Bill:
LAB Joint Favorable:
File No. 354: