In a historic choice, a U.S. appeals court on Friday mentioned the federal law requiring that workers be paid a minimum wage and overtime applies to staff in the marijuana business.
The 10th U.S. Circuit Court of Appeals in Colorado mentioned the protections in the Fair Labor Requirements Act (FLSA) apply to “all workers,” regardless of regardless of whether the organization they are engaged in is illegal beneath federal law, reports Reuters. The court rejected arguments by Colorado-primarily based Helix TCS Inc, which supplies safety solutions for marijuana enterprises, that its guards have been not entitled to overtime simply because their operate is illegal beneath the federal Controlled Substances Act.
Lawyers for Helix and a former safety guard who filed the class-action lawsuit did not straight away respond to requests for comment. The ruling was the 1st by a U.S. appeals court to address the problem. Other courts have mentioned that enterprises engaged in unlawful activities, such as gambling or employing illegal immigrants, are nonetheless topic to the FLSA.
Colorado, California, and Illinois are amongst the eleven U.S. states that have legalized recreational marijuana use by adults due to the fact 2012. Numerous other states permit marijuana use for healthcare purposes. As noted by Reuters, in Friday’s choice, the 10th Circuit mentioned that denying wage protections to workers in the marijuana business would encourage employers to engage in illegal markets and give them an unfair benefit more than legal enterprises.
The court noted that Congress has repeatedly amended the FLSA to exempt precise groups of workers, and has in no way completed so for staff of marijuana enterprises.
The case is Kenney v. Helix TCS Inc, 10th U.S. Circuit Court of Appeals, No. 18-1105.