Cannabis isn’t federally legal. Companies who operate in the cannabis space really only have the protection of the state’s laws in which they operate. Even full compliance with state laws is no shield to federal penalties or enforcement. Also, there is always a risk that cannabis contracts may not be upheld in court because they involve a federally illegal substance. For these reasons, we see a lot of really strange things in cannabis law that don’t really happen anywhere else. I wrote about this late last year. See here.
One of the things that prompted my last post was the federal appellate court decision before the Tenth Circuit Court of Appeals in Kenney v. Helix TCS, Inc. For a full summary of that case, you can read our post here. For a cliff’s note version:
Helix TCS, INC. (“Helix”) provides security services to cannabis businesses. Kenney, an employee of Helix, was classified as an exempt employee, meaning Helix did not pay him overtime pursuant to the requirements of the FLSA. Kenney brought suit against Helix claiming he was misclassified as exempt and should have been paid overtime.
Helix moved to dismiss the case, arguing that Kenney was not