Feds join city, state in investigating Jeannette hemp-drying business

The U.S. Department of Labor is investigating a controversial hemp-drying facility in Jeannette after employees complained they hadn’t been paid for weeks.

“We are aware of the situation and are looking into it,” a department spokesperson said when asked about the situation at Patriot Shield Pennsylvania, located in a warehouse on Thomas Avenue.

The department’s Wage and Hour Division is responsible for ensuring businesses are following federal labor laws. Such an investigation into labor practices can include examining payroll and time records as well as interviewing employees, according to a department fact sheet. A company found in violation of laws can be ordered to fix the problem, pay back wages and potentially face fines.

Officials with the state Department of Environmental Protection met with Patriot Shield on Wednesday and again Thursday, during an inspection and limited demonstration at the facility, an agency spokesperson said.

Current and former Patriot Shield employees started protesting about a month ago outside warehouse about the lack of pay. Some have faced eviction and unpaid bills as a result of the nonexistent paychecks.

The city and DEP separately ordered the warehouse to close. A cease-and-desist order from Jeannette issued about 10 days ago forbids any business activity there because Colorado-based Patriot Shield has not gotten an occupancy permit.

A DEP order issued Monday prohibits the company from receiving, processing or storing hemp. The department previously issued two notices of odor violations for a strong marijuana-like smell around the warehouse.

Several vehicles were in the parking lot Thursday, and a pungent hemp odor was noticeable on the property when when an employee opened the door. A company official did not respond to a message.

“I was told no one is here to talk to you right now,” a man told a Tribune-Review reporter who knocked on the door.

Employees are permitted to be at the warehouse, said city solicitor Tim Witt.

“They are allowed to be there if they’re bringing the building in compliance. But beyond that, no, there shouldn’t be any production or business operation there,” he said.

Patriot Shield’s deadline passed Monday to submit architectural drawing to the city detailing improvements it would make to the building to come into compliance with codes. The city hasn’t received anything this week, Witt said.

The plant has come under fire since September, when it opened without an occupancy permit.

Nearby residents soon complained about the smell, and the DEP issued two notices of odor violations — on Oct. 7 and Nov. 1. The city permitted the plant to operate on a temporary basis before issuing the first cease-and-desist order on Nov. 13. Patriot Shield reopened a couple days later after a temporary fix to address the odor complaints.

The city shut it down again about a week later. The DEP order this week stated that Patriot Shield didn’t get authorization from the department to operate a diesel generator or air scrubber at the warehouse.

To resume operations, the company must submit a plan to the DEP to install and operate air cleaning devices. The DEP would need to review the plan and issue a permit.

The plant employed 200 people, some of whom continued to work despite pay issues. Earned-income taxes for 2019 are due to the city on Jan. 31, said Michelle Langdon, city clerk and deputy chief fiscal officer. If Patriot Shield doesn’t meet that deadline to pay the taxes for its employees, the city could investigate, she said.

Farmers brought hemp to Patriot Shield to be dried into smokeable hemp flowers. That smoke tastes like pot and delivers the purported health and relaxation benefits of cannabinoids, without the THC that gets the smoker high.

The U.S. Farm Bill, which last year legalized the crop, regulates growers only. The state Department of Agriculture inspects farmers that grow hemp but is not responsible for facilities that store and process it. It’s unclear what regulations — if any — exist on the storage and manufacture of hemp products.

Patriot Shield Security started last year in Colorado, providing transportation and security for hemp and cannabis businesses. Customers wanted places to store and process their products, which led Patriot Shield to expand its mission into Pennsylvania.

The Thomas Avenue warehouse is owned by Herzl Real Estate, an Israeli-American company that bought the property for nearly $1.5 million in 2017. Herzl initially hoped to turn the warehouse into a medical marijuana grower/processor, but the state did not grant its 2018 permit application.