Marijuana firms have to comply with federal overtime law, court guidelines

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State-licensed marijuana organizations require to adhere to federal labor laws governing paying overtime to personnel, an appellate court ruled, which is a choice that could have broad implications for the MJ business.

A 3-judge panel of the U.S. Court of Appeals for the Tenth Circuit in Denver affirmed a choice by a reduce court in the case against Helix TCS, a Denver-primarily based business that offers safety and infrastructure solutions to the marijuana business.

Helix announced it disagreed with the ruling, and is exploring all of its choices, such as a doable appeal to the U.S. Supreme Court.

Essential information of the case contain:

  • Robert Kenney, a former safety guard of Helix, alleged that among February 2016 and April 2017, he and other safety guards on a regular basis worked additional than 40 hours a week with out getting paid overtime in violation of the Fair Labor Requirements Act (FLSA).
  • Helix argued that the FLSA didn’t apply to its workers due to the fact Colorado’s recreational marijuana business is in violation of the federal Controlled Substances Act.
  • Senior Judge Stephanie Seymour wrote that the reduce court, the U.S. District Court in Colorado, “correctly reasoned and case law has repeatedly confirmed that employers are not excused from complying with federal laws just due to the fact their company practices are federally prohibited.”

On the other hand, the appellate panel stated it wasn’t producing any conclusions about the merits of Kenney’s distinct claims.

The choice makes it possible for Kenney’s case against Helix in U.S. District Court to proceed, pending doable appeal.

“We are disappointed in the court’s ruling and think they got it incorrect,” Jordan Issue of Allen Vellone Wolf Helfrich &amp Issue, the lawyer for Helix, wrote in a statement.

“Congress did not intend to assure overtime to workers in the federally illegal marijuana business.”

To study additional about the case, click right here.

For the complete statement by the Helix lawyer, click right here.

Helix trades on the more than-the-counter markets as HLIX.

For evaluation and in-depth appears at the investment trends and bargains driving the cannabis business forward, sign up for our premium subscription service, Investor Intelligence.

Jeff Smith can be reached at [email protected]

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