Glass House hit with worker class action

A class action lawsuit has been filed against Glass House Brands Inc. (OTCQX: GLASF) and several of its subsidiaries, alleging numerous labor law violations.

The employee-led suit accused the California-based company of not providing sick leave, failing to pay minimum wage, and denying legally mandated lunch breaks, according to court documents obtained by Law360.

Additionally, it alleges that the company enforced unlawful work quotas on its employees.

The lead plaintiff, Gerardo Melendez, aims to represent a broad group of individuals who have worked for Glass House or its related entities in the realms of real estate or cannabis cultivation in Carpinteria. The suit also targets a staffing company, Labor Force Management Inc., for its role in supplying workers to Glass House under these conditions.

Court documents detail accusations that employees were made to work longer than the legally permitted hours — more than eight hours a day and over 40 hours a week — without receiving overtime pay.

It also claims that the company had too few staff for the amount of work they wanted done, leading to unreasonable expectations for workers, such as the demand for a single worker to process four pounds of cannabis daily.

These demands, the suit argues, breach California’s labor laws.

Among other allegations, the lawsuit accuses the company of not paying workers for the time required to don and doff work-related gear at the workplace, not providing a second lunch break during 10-hour shifts, and a series of other labor violations such as not providing proper seating, accurate wage statements, reimbursement for business expenses, and final wages upon employment termination.

The suit seeks compensation for affected workers under California’s Private Attorneys General Act, covering the past four years. It also mentions that during certain months of the COVID-19 pandemic, April 6 to October 1, 2020, the usual statute of limitations was extended.

The subsidiaries implicated include GH Camarillo LLC, Glass House Camarillo Cultivation LLC, Glass House Brands Inc., and Mission Health Associates Inc.

Although CEO Kyle Kazan is mentioned, he is not listed as a defendant.