New York promised an equity first cannabis market. It delivered a 57% loss rate.
The numbers come from a survey reported by the Times Union, conducted by FTI Consulting and commissioned by the Safe and Affordable Cannabis for New York Association, a coalition of cannabis stakeholders pushing Governor Hochul not to sign S10643. That provenance matters. This is industry commissioned research from an interested party, not an independent state audit. Treat the figures as a useful data point, not a neutral census.
What the survey found: more than 40 licensed cannabis businesses employing over 1,400 New Yorkers took part. 57% reported a net loss in their most recent fiscal year. Only 36% said they were profitable. Among the unprofitable, 79% had been losing money for an average of 15 months. Over 90% were independently owned.
Albany’s answer is S10643, sponsored by Sen. Jessica Ramos. It cleared the Senate 37 to 23 and passed the Assembly on June 5, 2026. It repeals the labor peace agreement requirement for license holders and directs the state Department of Labor to convene a Cannabis Industry Wage Board: three members, one from industry, one from the AFL CIO, and a public chair appointed by the labor commissioner. First hearing by March 1, 2027. Final report by December 31, 2027. The board can recommend minimum wages for cultivation, processing, distribution, and retail. Or it can conclude current pay is already adequate and recommend nothing.
Here is the tension, through a revenue ops lens. Fair pay matters. The survey itself shows cannabis workers averaging $25.87 an hour, about 19% above comparable jobs statewide. The industry already pays above retail. But you cannot regulate margins into existence. A wage board on top of businesses losing money for 15 months lands hardest on the small independents the law was supposed to protect. Even the architects of legalization, Assembly Majority Leader Crystal Peoples-Stokes and Sen. Liz Krueger, voted no.
And the irony nobody in Albany says out loud: the board’s own rules let it conclude pay is adequate and recommend no increase at all. That may be the most honest outcome available.
The political pressure is not unique to New York. For voter sentiment elsewhere, see why 71 percent of Massachusetts voters oppose adult use repeal. And for the next ballot fight on the horizon, see Florida recreational ballot measures for 2028.
FAQs
1. 1. Who says 57 percent of NY operators lose money, and should you trust it?
The figures come from an FTI Consulting survey commissioned by an industry coalition opposing the bill, so treat them as useful data from an interested party, not a neutral state audit.
2. 2. What is Albany’s answer to the losses?
S10643, which repeals the labor peace agreement requirement and creates a three member Cannabis Industry Wage Board to study and recommend minimum wages for cultivation, processing, distribution and retail.
3. 3. Would the wage board raise pay immediately?
No. It creates a study process with a first hearing by March 1, 2027 and a final report by December 31, 2027. The board can even conclude current pay is adequate and recommend nothing.
4. 4. What is the revenue ops tension here?
Fair pay matters, and the survey shows cannabis workers already average $25.87 an hour, about 19 percent above comparable jobs. But you cannot regulate margins into existence, and new wage mandates land hardest on the small independents the law was meant to protect.
5. 5. What makes the politics of this bill unusual?
Even the architects of New York legalization, Assembly Majority Leader Crystal Peoples Stokes and Senator Liz Krueger, voted no. That tells you how uneasy the industry’s own allies are.
Source
Original reporting by Beard Bros Pharms (no named byline on the source page): Most NY Cannabis Operators Lose Money Says Survey. Could A Wage Board Be Next?