FILE PHOTO: An unnamed employee waters hashish crops on Steve Dillon’s farm in Humboldt County, California, U.S. August 28, 2016. REUTERS/Rory Carroll
(Reuters) – A U.S. appeals court docket on Friday stated the federal legislation requiring that staff be paid a minimal wage and additional time applies to workers within the marijuana business, as an growing variety of states legalize leisure use.
The 10th U.S. Circuit Court docket of Appeals in Colorado stated the protections within the Honest Labor Requirements Act (FLSA) apply to “all staff,” no matter whether or not the enterprise they’re engaged in is illegitimate beneath federal legislation.
The court docket rejected arguments by Colorado-based Helix TCS Inc, which offers safety companies for marijuana companies, that its guards weren’t entitled to additional time as a result of their work is illegitimate beneath the federal Managed Substances Act.
Attorneys for Helix and a former safety guard who filed the class-action lawsuit didn’t instantly reply to requests for remark.
The ruling was the primary by a U.S. appeals court docket to handle the difficulty. Different courts have stated that companies engaged in illegal actions, corresponding to playing or using unlawful immigrants, are nonetheless topic to the FLSA.
Colorado, California, and Illinois are among the many eleven U.S. states which have legalized leisure marijuana use by adults since 2012. Many different states allow marijuana use for medical functions.
In Friday’s determination, the 10th Circuit stated that denying wage protections to staff within the marijuana business would encourage employers to have interaction in unlawful markets and provides them an unfair benefit over authorized companies.
The court docket famous that Congress has repeatedly amended the FLSA to exempt particular teams of staff, and has by no means carried out so for workers of marijuana companies.
The case is Kenney v. Helix TCS Inc, 10th U.S. Circuit Court docket of Appeals, No. 18-1105.
Reporting by Daniel Wiessner in New York; Enhancing by Daniel Wallis