A New York federal judge kept a challenge to the state’s labor peace mandates for marijuana companies intact, rejecting attempts by the state cannabis board to dismiss it.

Judge Alvin Hellerstein of the US District Court for the Southern District of New York said in a ruling Tuesday that cannabis dispensary company Hybrid NYC LLC has standing to sue the state and shouldn’t be required to renew a labor peace agreement until unionization proceedings have been resolved.

Hybrid claimed in its suit that New York’s law requiring employers in the marijuana industry to maintain neutrality agreements with labor unions is …