U.S. Court of Appeals ruling in overtime spend lawsuit Friday assists “legitimize” Colorado’s business

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The Denver Post create

The case at challenge bargains with Robert Kenney, a former employee at Helix TCS, a enterprise that gives safety and other solutions to marijuana businesses in Colorado. In 2017, Kenney sued Helix in U.S. District Court for refusing to spend him overtime when he was routinely worked extra than 40 hours a week as a safety guard for Helix’s marijuana business customers, an alleged violation of the U.S. Fair Labor Requirements Act.

Helix’s attorneys moved to dismiss the case on the grounds that a federal court had no jurisdiction to hear the case “because Colorado’s recreational marijuana business is in violation of the Controlled Substances Act,” per case documents. The district court rejected that motion but a panel of judges for the U.S. Court of Appeals for the Tenth Circuit was tapped to critique that denial.

On Friday, that panel upheld the reduce court’s ruling.

“The district court properly reasoned and case law has repeatedly confirmed that employers are not excused from complying with federal laws just simply because their organization practices are federally prohibited,” Senior Judge Stephanie Seymour wrote.

Seymour went on to explanation that denying personnel in the marijuana business federal labor protections would give their employers an unfair benefit and encourage other employers to engage in illegal activity to get about regulations.

It is clear Colorado lawmakers currently really feel this way, according to Kristi Kelly, executive director of the Marijuana Business Group, the state’s most prominent business trade organization. When the legislature passed a new marijuana regulation sunset bill this year, it incorporated a provision dictating businesses comply with federal labor guidelines, Kelly stated.

Although she can not speak for third-celebration businesses like Helix, Kelly stated, “Typically what we see is firms are exceeding federal specifications.”

The suit will now head back to the district court. Rex Burch, 1 of the attorneys representing Robert Kenney in the case, stated he’s heard from people today in the marijuana business that the court rulings add legitimacy to what they do.

Colorado marijuana businesses are topic to federal labor laws in spite of getting illegal, court guidelines

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