Cannabis Employee Job Retention Ordinance

Ordinance: SMC 8.38

Rules: SHRR Chapter 230 (Administrative Rules)

Cannabis Employee Job Retention Ordinance Notice of Rights

Cannabis Employee Job Retention Ordinance Q&A

In September 2022, City Council passed and the Mayor signed, the Cannabis Employee Job Retention Ordinance, SMC 8.38. This law is effective on July 19, 2023.

This ordinance requires covered outgoing cannabis business employers to post written notice of a change in control and provide a preferential hiring list to the incoming cannabis employer. It also requires the incoming employer to retain covered employees for a certain period of time following the change, among other hiring and retention requirements. The proposed rules clarify issues raised by the ordinance, including provisions related to preferential hiring, offer of employment, and discharge from employment for just cause.  Key protections include: 

  1. Outgoing employer obligations
    • Outgoing employers that undergo a change in ownership must provide a preferential hiring list to the incoming employer.
    • Outgoing employers must post notice of the change in ownership at the jobsite.

  2. Incoming employer obligations
    • Incoming employers must hire from the preferential hiring list for 180 days. If an employee accepts a job offer, the employer must retain the employee for no less than 90 days and can only discharge the employee for just cause during this time period. 
    • Incoming employers must continue to post notice of the change in ownership for 180 days. 

  3. Notice and Posting. Employers must provide a notice of rights afforded under the ordinance. Employers must also provide a written notice to employees of the names used by any associated integrated enterprises.

  4. Recordkeeping. Employers must maintain records that document compliance for a period of three years.

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