Every marijuana establishment in Virginia’s adult-use market must have a signed labor peace agreement (LPA) with a union. The requirement sits in Section 4.1-1001 of the Code of Virginia, which the General Assembly enacted through the 2026 budget bill (HB 30, 2026 Sp. Sess. I, c. 1). The LPA is not a post-licensing obligation. The Virginia Cannabis Control Authority (CCA) will deny any initial or renewal application filed without a timely LPA attestation.
The CCA may begin accepting license applications on February 1, 2027 (see our HB 30 FAQ for the full timeline). An application filed without a union-signed LPA attestation will be denied, so the LPA is a lead-time item. Anyone planning to apply should start on it now. New York repealed its own LPA mandate on October 28, 2026, but Virginia’s requirement remains in effect.
Vicente LLP’s Virginia cannabis lawyers help applicants prepare complete license applications, from entity formation and zoning to the LPA attestation, ahead of the application window the CCA may open on February 1, 2027. Learn more about our Virginia cannabis licensing services.
What Is a Labor Peace Agreement?
An LPA is a contract between an employer and a union. At a minimum, the union agrees not to picket, strike or boycott the business. In exchange, the employer typically agrees to stay neutral if the union tries to organize its workers. An LPA is not a collective bargaining agreement. It does not set wages or mean that any employee has joined a union. It sets the ground rules for an organizing campaign.
Why Do States Require Labor Peace Agreements for Cannabis?
Organized labor has been an effective advocate for cannabis legalization. LPA mandates are often part of the price of passage. The legal issue is that the National Labor Relations Act (NLRA) generally preempts state laws regulating private-sector union organizing. States try to get around this by framing the LPA as protection of the state’s own proprietary interest in a licensed program that generates tax revenue (the “market participant” theory). Virginia’s statute adopts that framing directly, defining an LPA as an agreement that “protects the Commonwealth’s proprietary interests.”
What Does Virginia’s Labor Peace Agreement Law Require?
The key points of Section 4.1-1001:
- Who is covered: Every “marijuana establishment,” from testing labs to retailers, including pharmaceutical processors exercising dual-use privileges. There is no small-employer exemption.
- Initial applications: The applicant must submit an LPA attestation signed by both the applicant and the union, or the attestation will be denied.
- Renewals: Each renewal requires a new attestation executed “within 10 days of the submission date of the renewal application.”
- Ongoing condition: The LPA is an “ongoing material condition of the license.” A violation may result in denial, suspension or revocation.
- Mandatory suspension: The CCA must set a schedule for reviewing LPA status. If it finds “unsatisfactory status or insufficient maintenance” of an LPA, the CCA “shall suspend” the license.
- Which unions qualify: A “bona fide labor organization” must be actively seeking to represent employees of Virginia marijuana establishments. The CCA weighs seven non-determinative factors, including existing Virginia cannabis contracts, three years of federal annual reports and audited financials, and national affiliation.
The union countersigns the attestation. As a practical matter, that gives the union a say in whether your application is complete. The 10-day renewal language is also unclear. It does not say whether the attestation must be signed within the 10 days before submission or may be signed afterward. The CCA has not yet addressed either point. The draft adult-use regulations the CCA released in September 2026 do not mention LPAs at all.
How Do You Get a Labor Peace Agreement Signed in Virginia?
Getting an LPA signed takes a qualifying union, negotiated terms and both signatures on the attestation. It is the one application item you cannot complete on your own. The union has no obligation to sign on your timeline; it knows you cannot file without it, and every other applicant will be calling the same small group of unions as the window approaches. Start early and leave time for each step before filing. The LPA is one piece of a full Virginia cannabis license application and should run in parallel with entity formation, real estate and zoning work.
- Identify the union: In the region, UFCW Local 400 represents cannabis workers at many Maryland dispensaries and has pushed for LPAs there. Test any union against the statutory factors first. An LPA with a union the CCA finds does not qualify is a license problem.
- Negotiate the terms: Expect requests for neutrality, workplace access, employee lists and card-check recognition. These terms are negotiable. They will also bind you long after licensing.
- Put it in the deal documents: For investors and acquirers, the LPA is a license condition, so a lapse is a license risk. Diligence should confirm that the LPA exists, that the union qualifies and that the agreement survives a change of control.
- Calendar the renewal: A missed attestation means a denied renewal.
Why Did New York Repeal Its Labor Peace Agreement Mandate?
On October 28, 2026, Governor Hochul signed S10643 (Chapter 369 of the Laws of 2026), which repealed New York’s LPA mandate effective immediately. Voluntary LPAs and existing collective bargaining agreements survive. The bill also created a cannabis wage board and disclosure rules, which Hochul agreed with legislative leaders to strip out next session.
The repeal follows a run of litigation. In Hybrid NYC LLC v. New York State Cannabis Control Board, a Brooklyn dispensary argued that the NLRA preempts New York’s mandate. Judge Hellerstein denied the state’s motion to dismiss in December 2025. In New Jersey, the federal district court held in Curaleaf Holdings, Inc. v. New Jersey Cannabis Regulatory Commission (May 27, 2026) that the LPA requirement is preempted, but only as applied to Curaleaf. New Jersey has appealed to the Third Circuit. An Oregon federal court enjoined that state’s mandate in Casala, LLC v. Kotek (May 2025). That case is on appeal to the Ninth Circuit. Not every challenge has worked. A California federal court dismissed one in March 2025 on unclean hands grounds because the plaintiff’s business violates federal law.
Could Court Challenges End Virginia’s LPA Requirement?
If the preemption cases keep going the way of Curaleaf and Casala, mandatory LPAs could disappear across the industry. Virginia’s statute would then be exposed. That outcome is a long way off. The Fourth Circuit, which covers Virginia, has not addressed the issue. No court has ruled on Virginia’s statute. For now, an application without an LPA is not valid. Applicants should start the union conversation now and negotiate the LPA as carefully as any other contract.
Frequently Asked Questions About Virginia Labor Peace Agreements
Do I need a labor peace agreement to apply for a Virginia cannabis license?
Yes. Every marijuana establishment applicant must submit an LPA attestation signed by both the applicant and a qualifying union. The CCA will deny an application filed without one.
Do small cannabis businesses in Virginia need a labor peace agreement?
Yes. Section 4.1-1001 has no small-employer exemption. It covers every marijuana establishment, from testing labs to retailers.
Does a labor peace agreement mean my employees have to join a union?
No. An LPA is not a collective bargaining agreement. The union typically agrees not to strike or picket, and the employer agrees to stay neutral if the union tries to organize its workers.
Does New York’s repeal change the requirement in Virginia?
No. New York repealed its own mandate on October 28, 2026. Virginia’s requirement in Section 4.1-1001 remains in effect, and no court has ruled on it.
When should Virginia applicants start on their labor peace agreement?
Applicants should start now. The CCA may begin accepting applications on February 1, 2027, and the union has no obligation to sign on your timeline.
Questions about labor peace agreements, Virginia license applications or diligence on Virginia cannabis deals? Contact Vicente LLP’s Virginia cannabis licensing team.
About the Authors
Charles Alovisetti is a Virginia cannabis lawyer and a partner at Vicente LLP, where he co-chairs the Corporate Department. He is admitted to practice in Virginia, as well as Colorado, Maryland, Massachusetts, New York and Washington, D.C. Charlie advises cannabis operators, investors and lenders on M&A, financings and corporate structuring, and he writes and speaks regularly on Virginia’s adult-use cannabis market and the Virginia Cannabis Control Authority’s licensing program. Chambers USA has ranked him Band 1 in Cannabis Law: Eastern United States every year since 2020. He co-authored a 2020 Routledge book on cannabis law, finance and governance, and previously practiced corporate law at Latham & Watkins and Goodwin. View Charles’ full profile.
Meg Nash is a partner at Vicente LLP and a cannabis licensing attorney who helps applicants build competitive state license applications. Her practice covers state cannabis licensing, land use and zoning, and regulatory compliance, with deep experience in mid-Atlantic and New England licensing rounds, including Maryland and Rhode Island. Meg brings that experience to Virginia applicants preparing for the Commonwealth’s adult-use licensing window, from entity and ownership structure to site selection, zoning and application requirements such as the labor peace agreement attestation. She has been named a Best Lawyers “One to Watch” in Land Use and Zoning Law (2021 to 2025) and a Massachusetts Lawyers Weekly “Top Women of Law” honoree (2024). View Meg’s full profile.
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