The Seattle Cannabis Employee Job Retention Ordinance (SMC 8.38) was established to ensure job continuity for employees in the cannabis industry during transitions of business ownership. The ordinance mandates specific actions from both outgoing and incoming employers to facilitate a smooth transition and preserve employment for existing workers.
Important Note:
- Outgoing Employer Obligations:
- Preferential Hiring List: Outgoing employers must provide a preferential hiring list to the incoming employer. This list includes names, addresses, dates of hire, and job classifications of all covered employees.
- Notice of Ownership Change: Must post a written notice at the job site indicating a change in ownership.
- Preferential Hiring List: Outgoing employers must provide a preferential hiring list to the incoming employer. This list includes names, addresses, dates of hire, and job classifications of all covered employees.
- Incoming Employer Obligations:
- Hiring from Preferential List: Incoming employers are required to hire from the preferential list for 180 days after the change in control. They must retain employees who accept job offers for at least 90 days and can only discharge them for just cause during this period.
- Continued Posting of Notice: Must continue posting the notice of ownership change for 180 days.
- Hiring from Preferential List: Incoming employers are required to hire from the preferential list for 180 days after the change in control. They must retain employees who accept job offers for at least 90 days and can only discharge them for just cause during this period.
- Notices and Recordkeeping:
- Notice of Rights: Employers must provide notices about the rights afforded under the ordinance.
- Recordkeeping: Employers are required to maintain documentation proving compliance with the ordinance for three years.
- Notice of Rights: Employers must provide notices about the rights afforded under the ordinance.
- Definitions and Specific Rules:
- Preferential Hiring Practices: The incoming employer must prioritize hiring by seniority within each job classification, ensuring that those with comparable job classifications are considered appropriately.
- Offer of Employment: Job offers must be in writing and remain open for at least ten business days. The methods of delivering these offers are specified to ensure clear communication.
- Preferential Hiring Practices: The incoming employer must prioritize hiring by seniority within each job classification, ensuring that those with comparable job classifications are considered appropriately.
- Enforcement and Legal Framework:
- Just Cause for Discharge: During the initial 90-day employment period post-transition, incoming employers can only terminate employees for just cause, which requires a fair and objective investigation showing a violation of known workplace standards.
- Non-Disclosure Protections: Protects the identity of individuals providing information about alleged violations unless disclosure is legally mandated or agreed upon by the individual.
- Just Cause for Discharge: During the initial 90-day employment period post-transition, incoming employers can only terminate employees for just cause, which requires a fair and objective investigation showing a violation of known workplace standards.
Other Resources:
- Notice of Rights: All employers must post the Notice of Rights at work. Please post a copy of this Notice of Right at the worksite/workplace at a place where all employees will have easy access to it.
- FAQ Sheet: OLS compiled a comprehensive FAQ sheet that you can refer to for commonly asked questions.
- Guideline for Administering the Law: OLS also provided detailed guidelines to help business owners administer the law properly.
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