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Former Employees Sue Fresno Cannabis Retailer. City Investigates.
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By David Taub, Senior Reporter
Published 7 months ago on
October 9, 2024

Higher Level faces an employee lawsuit and a union's letter to the city questioning an ownership change. (GV Wire/David Taub)

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A proposed sale of a Fresno marijuana retailer has led to at least one lawsuit and a letter of condemnation from an employees’ union.

The CEO of Higher Level, operating in central Fresno since January, said they plan to sell to another operator with several locations in the state.

Higher Level opened in January after the city of Fresno granted the company a license in 2021. CEO Sal Palma tells GV Wire they are in a purchase and sales agreement with The Premier Group, but the sale is not final.

However, a lawsuit from now-former employees said Premier Group took over on July 1 and fired several employees.

Palma informed employees by email on June 20 that Premier Group would take over, according to the lawsuit. The employees “realized they were no longer welcome at the store, as they did not meet the new owners’ expectations (for) appearance, age, and gender (specifically for male Plaintiffs).”

Higher Level Cuts Staff

Palma said Higher Level downsized its workforce over the summer because “the business did not substantiate the workforce.” He did not provide the exact number of workers let go.

Seven former employees filed a lawsuit in Fresno County Superior Court on Sept. 30, alleging they were axed because of gender and age.

The new operator “prioritized employees who were female, under 25 years old, slim, or physically fit, and dressed provocatively.” Employees matching those descriptions were offered continued employment, the lawsuit alleged.

Those who did not meet those standards were allegedly terminated and did not receive payment for their work.

When GV Wire visited Higher Level this week, it observed three female clerks modestly dressed.

Union Sends City a Letter

“Legitimate cannabis operators … are at risk of being undercut and pushed out by rogue entities.”UFCW 8 president Jacques Loveall, in a letter to the city of Fresno

On Monday, Oct. 7, UFCW 8 — the union that represents marijuana workers, but not workers at Higher Level — sent Mayor Jerry Dyer and all seven councilmembers a letter outlining its concerns. UFCW is asking the city to review the matter.

“This particular retail license changed hands under concerning circumstances, leading to a host of issues that could result in its eventual closure. 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,” UFCW 8 president Jacques Loveall wrote.

Loveall also wrote that such practices would undermine and destabilize “an already fragile market.”

“Legitimate cannabis operators … are at risk of being undercut and pushed out by rogue entities. This could have severe economic repercussions for businesses and for the local economy,” Loveall wrote.

Higher Level is in the process of renewing its license with the city within the next 30 days, Palma said. The renewal will include information about the potential sale.

The Premier Group — with locations in places like Modesto, Stockton and Merced — applied for one of the initial 21 licenses from Fresno. The city chose other retailers, although not all have opened.

Premier CEO Bert Sarkis briefly spoke with GV Wire twice, only saying a marketing representative would reach out. That has yet to happen.

City Attorney: Severe Consequences

Fresno City Attorney Andrew Janz confirmed that his office is investigating wage theft claims against Higher Level.

As far as the city is concerned, Higher Level is still the owner based on information from the Secretary of State. According to a search of the Secretary of State website, Fresno Cares — the parent name for Fresno Higher Level branch — remains the owner.

City permission is required for any change of ownership. Janz said it is up to the business owner to run its business the way it sees fit.

“If a business transfers without city permission, there will be severe consequences,” Janz said.

The employee lawsuit includes the email from Palma, saying “beginning July first [sic], I will be handing over the day-to-day business planning and operations of Higher Level Fresno to The Premier Group.”

Janz said he is aware of the employee lawsuit but declined to comment on the ownership or operational allegations.

An exhibit from an employees lawsuit shows an email from CEO Salvatore Palma about changes to Higher Level. (Fresno County Superior Court)
(GV Wire/Paul Marshall)

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David Taub,
Senior Reporter
Curiosity drives David Taub. The award-winning journalist might be shy, but feels mighty with a recorder in his hand. He doesn't see it his job to "hold public officials accountable," but does see it to provide readers (and voters) the information needed to make intelligent choices. Taub has been honored with several writing awards from the California News Publishers Association. He's just happy to have his stories read. Joining GV Wire in 2016, Taub covers politics, government and elections, mainly in the Fresno/Clovis area. He also writes columns about local eateries (Appetite for Fresno), pro wrestling (Off the Bottom Rope), and media (Media Man). Prior to joining the online news source, Taub worked as a radio producer for KMJ and PowerTalk 96.7 in Fresno. He also worked as an assignment editor for KCOY-TV in Santa Maria, California, and KSEE-TV in Fresno. He has also worked behind the scenes for several sports broadcasts, including the NCAA basketball tournament, and the Super Bowl. When not spending time with his family, Taub loves to officially score Fresno Grizzlies games. Growing up in the San Francisco Bay Area, Taub is a die-hard Giants and 49ers fan. He graduated from the University of Michigan with dual degrees in communications and political science. Go Blue! You can contact David at 559-492-4037 or at Send an Email

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