Former employees of a central Fresno cannabis dispensary have filed a lawsuit, claiming they were fired because of their gender and age.
The lawsuit comes amid questions that the dispensary, Higher Level Fresno, was bought out by another company against Fresno city code.
The backstory: Cannabis company The Premier Group moved to acquire Higher Level over the summer.
- The company sent a letter to its vendors stating that as of July 1, The Premier Group was taking over purchasing responsibilities for Higher Level.
- Dozens of employees were laid off on July 7, half a year after the dispensary opened for business.
- The acquisition raised questions regarding compliance with Fresno Municipal Code, which states that any time a commercial cannabis business has a change in ownership, the applicant needs to reapply with the city manager for the license. City code also states that ownership changes are only considered at the same time as a renewal application, which generally happens on an annual basis.
The big picture: Seven former Higher Level employees filed a lawsuit against the company last week.
- They claimed they were informed by email on June 20 that The Premier Group was acquiring the dispensary, and that the company took it over on July 1.
- They also allege that they were not welcome at the store because “they did not meet the new owners’ expectations (for) appearance, age, and gender.”
- The lawsuit claims The Premier Group “prioritized employees who were female, under 25 years old, slim, or physically fit, and dressed provocatively.”
Driving the news: Higher Level CEO Sal Palma told GV Wire that the company has a purchase and sales agreement with The Premier Group, which has not been finalized yet.
- Fresno City Attorney Andrew Janz told The Sun in July that the city has received a wage theft complaint against The Premier Group and is looking into the complaint for possible prosecution.
Go deeper: Along with the lawsuit, a union representing cannabis workers – UFCW 8-Golden State – sent a letter to the city sharing concerns about The Premier Group acquiring Higher Level. The union does not represent employees at Higher Level, but it has members at other dispensaries in the city.
- “This particular retail license changed hands under concerning circumstances, leading to a host of issues that could result in its eventual closure,” the letter reads. “We are concerned this company is attempting to circumvent the license transfer process as outlined in the City of Fresno’s retail cannabis ordinance. The Premier Group appears to be promoting their ownership of Higher Level of Fresno.”
- The union said other cannabis dispensaries are at risk of being undercut and pushed out by “rogue entities.”
- The union requested the city to investigate the situation.
