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.

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Union Sends City a Letter

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.

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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.

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