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Tenth Circuit Rules Marijuana Business Is Required To Comply With Federal Overtime Laws

Lorraine H

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The Tenth Circuit Court of Appeals issued a ruling affirming a lower court decision concerning the application of federal overtime laws.

The case, brought by Robert Kenny, against his former employer Helix TCS, deals with allegations that Helix refused to pay overtime, which is an alleged violation of the U.S. Fair Labor Standards Act. Attorney’s for Helix filed a motion to dismiss, arguing that the federal court did not have jurisdiction over the claim because “Colorado’s recreational marijuana industry is in violation of the Controlled Substances Act.” The District Court denied the motion to dismiss, which Helix appealed to the Tenth Circuit. The Tenth Circuit affirmed the District Court Order denying the dismissal.

The Tenth Circuit held,

“The district court correctly reasoned and case law has repeatedly confirmed that employers are not excused from complying with federal laws just because their business practices are federally prohibited.”

The case is back in the district court, where it will go forward.

Lorraine H started her young writing career in local news journalism as a reporter many ages ago and was a refreshing insight to her opportunity of authoring engaging and helpful to the people in her community of today. While she has a Bachelor’s Degree in Media Studies And Communication, that story chasing thrill has translated into how she conducts and carries her words to the TOC community and all of her contributions.

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