On January 12, 2026, New Jersey Governor Phil Murphy signed Assembly Bill 4182 amending key sections of the New Jersey Employer-Employee Relations Act (NJEERA). Originally enacted in 1968, NJEERA governs labor relations in the state’s public sector and established the Public Employment Relations Commission (PERC) to oversee collective bargaining and dispute resolution for public employees.

This new legislation, which contains multiple pages of additional text, (1) implements a significant shift for cannabis employers, imposing labor law obligations that previously did not apply to their workforce and (2) imposes some burdens on other private sector employers whose employees are not covered by the National Labor Relations Act. Until now, many cannabis workers—particularly those employed by licensed cultivators—were excluded from protections against unfair labor practices under federal and state law given that they were exempted from the National Labor Relations Act (NLRA). Assembly Bill 4182 closes that gap by expanding the authority of the New Jersey State Board of Mediation (NJSBM) within the Department of Labor and Workforce Development to oversee cannabis employment not regulated by the NLRA.

The law also creates the Division of Private Employment Dispute Settlement, which will handle negotiating units, certifications, settlements, and grievances for private employees not covered by the NLRA. The NJSBM is now authorized to investigate and remedy unfair labor practices involving cannabis employers, including the imposition of financial penalties for proven violations. The new provisions take effect on or about May 12, 2026. 

Expanded Cannabis Employee Rights

Under the NLRA, “agricultural laborers” are excluded from federal labor protections, leaving many cannabis cultivation workers without organizing rights. Assembly Bill 4182 changes that by granting cannabis employees—defined as workers employed by licensed cannabis businesses in New Jersey and not subject to the NLRA—the right to organize, bargain collectively, and be protected against unfair labor practices.

The law generally prohibits cannabis employers and their agents from:

• Interfering with, restraining, or coercing employees in exercising their rights.
• Dominating or interfering with any employee organization.
• Discriminating against employees for union activity or disclosures.
• Refusing to negotiate in good faith or sign agreements.
• Violating any Board regulation.

Similarly, cannabis worker unions are prohibited from:

• Coercing employees or employers in exercising their rights.
• Interfering with employer representative selection.
• Refusing to negotiate in good faith.
• Violating Board regulations.

Cannabis Employer Obligations

Cannabis employers now face substantial compliance requirements. They must allow unions enhanced access to employees, including providing employee lists, permitting on-site meetings (and meetings in employer-controlled living quarters), and communicating with new hires. Once recognized, unions may engage in public campaigns related to disputes, including urging consumers not to patronize certain businesses.  Finally, there is a provision in the law that if a labor contract is not reached after 90 days, the matter may be referred to the NJSBM for mediation.  If after 30 days, the NJSBM cannot resolve it, either party may refer the matter to binding arbitration.  This is a monumental shift from the manner in which collective bargaining typically occurs and ignores the long-standing data indicating that  bargaining a first contract takes an average of 15 months.

Division of Private Employment Dispute Settlement

Notably, the law establishes a new Division tasked with enforcing labor rights for cannabis and other private-sector employees excluded from the NLRA. Working alongside the NJSBM, the Division will resolve disputes, conduct investigations, issue subpoenas, and compel testimony. It appears cannabis employers will interact primarily with this Division for compliance matters, making it essential to prepare HR and legal teams for this new oversight.

“Majority Support Petition”

Also of significant impact to employers, this new law creates a mechanism for employee organizing dubbed the “Majority Support Petition.”  The Petition empowers labor organizations to become the exclusive bargaining representative for cannabis workers without requiring a traditional representation election. To initiate this process, a union must submit a petition to the Division of Private Employment Dispute Settlement asserting that at least 50% of employees in the bargaining unit signed authorization cards, based on the employer’s most recent payroll data. It must also confirm that no valid representation election has occurred within the prior 12 months, and that no existing collective bargaining agreement blocks certification.

Once properly filed, the Division reviews the petition and, assuming it meets statutory requirements, certifies the labor organization as the exclusive bargaining agent. Employers are then legally obligated to recognize the union and engage in good‑faith bargaining. This streamlined procedure mirrors similar mechanisms found in certain public-sector labor laws, providing a lightning quick path to representation where holding an election may result in greater delay. This process also eliminates the right of workers to cast a secret ballot in an election, as is required in representation elections pursuant to federal labor law.

By offering this framework, the new law reduces procedural barriers and accelerates union recognition for cannabis employees not covered by the NLRA. It places the burden on employers to respond promptly and begin collective bargaining once majority support is established, underscoring the need for cannabis employers to track employee organizing activity and maintain transparent payroll records.

Robust Penalties

Under the new law, the Division can adjudicate unfair labor practices, issue cease-and-desist orders, and impose civil penalties of up to $10,000 per violation of law. In cases involving discharge, threat of discharge, or serious economic harm—such as wage loss—the penalty imposed may be up to $20,000 per violation.  These measures apply to conduct such as refusing to negotiate, interfering with employee rights, or retaliating against union activity.

Employers failing to comply with newly-imposed obligations (for instance, refusing to provide employee rosters, denying union access, or failing to negotiate in good faith) face civil fines of up to $5,000 per day of non-compliance—a substantial increase over the previous $1,000 daily cap.

Takeaways

These changes signal a new era of labor relations for cannabis employers and potentially other employees presently excepted from coverage under the NLRA.  Most clearly, it indicates that New Jersey supports the unionization of cannabis workers and a process that will make that much simpler for unions.  Finally, it threatens more visible and aggressive enforcement against employers that resist.

Cannabis employers must act quickly to adapt to this new and sweeping legislation. This means reviewing policies and handbooks to ensure they align with the new requirements, training managers on what constitutes an unfair labor practice, and preparing internal processes for handling union petitions and bargaining requests. Proactive compliance will not only mitigate risk but also position businesses to navigate this evolving regulatory landscape effectively.

It is highly recommended that impacted employers seek labor counsel, including from the authors of this update or more broadly from one of Seyfarth’s other lawyers in its New Jersey or Labor Management Relations Practice Groups.

Seyfarth Shaw LLP provides this information as a service to clients and other friends for educational purposes only. It should not be construed or relied on as legal advice or to create a lawyer-client relationship. Readers should not act upon this information without seeking advice from their professional advisers.