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Brett Gelbord is an accomplished business attorney seated in Dykema’s Labor & Employment Group focused on providing practical and efficient guidance to employers on all manner of workforce-related issues. Brett has represented clients in a variety of industries, with a particular focus on the cannabis, automotive, and technology sectors.

On March 7, 2023, a federal court in Pennsylvania issued a ruling denying a cannabis company’s motion to dismiss claims based on the federal Fair Labor Standards Act (the “FLSA”). The opinion in DeMarco et al. v. FarmaceuticalRC, LLC et al., W.D. Pa. Case No. 2022cv-1164, covers familiar ground in the realm of FLSA misclassification cases, and explains why the plaintiffs—who work as drivers ferrying defendants’ cannabis products along their supply chain—sufficiently pled their claims. Specifically, the court applied the six-factor test for determining whether a given worker is an employee or an independent contractor and found that plaintiffs had sufficiently alleged the existence of an employer-employee relationship.

Continue Reading Cannabis Employee Misclassification Case Moves Forward in Federal Court

The 2022 general election saw cannabis on the ballot in 32 municipalities across Michigan. With the votes tallied, it appears that 13 municipalities voted in favor of initiatives to expand cannabis access that were on the ballot. Some of those municipalities voted to allow cannabis businesses for the first time, while others voted to expand legal access from only medical to adult use. Many of the proposals, both for or against, came back very close, suggesting that the issue remains a divisive one despite the additional tax revenue received by municipalities that already allow cannabis businesses within their bounds.
Continue Reading 2022 Election Results – Cannabis Continues Its Spread Across Michigan

On August 30, 2022, the Wayne County Circuit Court issued rulings denying injunctive relief to several cannabis companies that challenged the implementation of the City of Detroit’s adult-use cannabis ordinance (the “Ordinance”). In addition to denying motions for preliminary injunctions, the Court also dismissed the cases entirely. In doing so, the court reached several conclusions that are at odds with a full reading of Michigan’s cannabis statutes and rules. The opinions can be found here: Case No. 22-006534-CZ Jars Holding LLC et al v. City of Detroit; and here: Case No. 22-00594-CZ House of Dank et al v. City of Detroit.

Following these rulings, the City began accepting adult-use applications on September 1 and will accept applications until September 30. It has been a long and torturous route to get to this point.
Continue Reading Detroit Opens Adult-Use Retail Licensing After Victory in Court

Earlier this month, a cannabis company located in Manistee, Michigan, announced that its dispensary workers successfully unionized, marking the first instance of organized labor in the state’s cannabis industry. The company’s dispensary workers are now members of United Food and Commercial Workers Local 876. While Michigan has a long history of unionized workforces, this is a new development for the state’s cannabis industry. Industry employers should take note of some key considerations when managing a union shop.[1]
Continue Reading Organized Labor Rolls Up To The Michigan Cannabis Industry