10th Circ. Cannabis Ruling Follows Federal Regulation Trend

Law360 (September 24, 2019, 6:10 PM EDT) -- Cannabis companies must follow federal wage and hour law, according to the U.S. Court of Appeals for the Tenth Circuit. In Kenney v. Helix TCS,[1] the court ruled that the federal Fair Labor Standards Act applies to workers employed by a business whose operations simultaneously violate the federal Controlled Substances Act. Yes, a business that is illegal under federal law must pay its workers consistently with federal law.

The result sounds surprising, but, it is somewhat predicable given the FLSA’s purpose of protecting workers. More broadly, it serves as a reminder that businesses in the cannabis industry generally face at least...

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