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Legalized Marijuana and Employment

Legalized Marijuana and Employment: Off-duty Use and Drug Testing

While all marijuana use remains illegal under federal law, most states, including California, have enacted laws that allow certain uses of legalized marijuana or a marijuana derivative. None of these laws place any restrictions on an employer’s right to administer drug tests or to prohibit their employees from using or being under the influence of marijuana at work or during work hours.

However, it is not always clear whether an employer may take adverse employment actions against an employee based solely on a positive test for legalized marijuana. As a result, several courts have issued
decisions on this issue. These decisions will answer this question for employers in some legalized marijuana states and may be helpful for employers in others.

Links And Resources

This Compliance Overview provides a general summary of federal and state marijuana laws and the court decisions that provide guidance for employers in this area.

OVERVIEW

Under virtually every state law that legalizes marijuana use, employers have an explicit right to prohibit their employees from using or being under the influence of marijuana at work or during work hours. In addition, none of these laws place any restrictions on an employer’s right to administer drug tests.

Employment disputes can arise when a state’s marijuana law does not address whether employers may prohibit employees or applicants from engaging in off-duty marijuana use. The inconsistency between federal law and state marijuana laws also leads to questions regarding employers’ obligations.

FEDERAL AND STATE MARIJUANA LAWS

The federal Controlled Substances Act (CSA) classifies marijuana as a Schedule I substance, which means it is considered to have high potential for abuse and no currently accepted medical applications. All uses of Schedule I substances are illegal under the CSA. In addition, the federal Food, Drug and Cosmetic Act (FDCA) prohibits the use, dispensing and licensing of substances, such as marijuana, that have not been approved by the federal Food and Drug Administration.

Nevertheless, most states have passed laws legalizing certain uses of marijuana. These states generally fall into one of the following three categories:

COURT DECISIONS ON FEDERAL VS. STATE MARIJUANA LAWS

At least two state supreme courts have held that, because all marijuana use  is illegal under the CSA, federal law protects employers from lawsuits for
taking an adverse employment action against an individual based on his or her marijuana use that is legal under state law. Specifically:

More recently, however, two other courts have held that federal laws do not protect employers from lawsuits for adverse employment actions based on legalized, off-duty marijuana use.

Specifically:

Although courts in other states are not bound by any of these decisions, the opinions suggest that employers in states with legalized marijuana should take caution before relying solely on federal laws, such as the CSA, to justify adverse employment actions against an individual who tests positive for marijuana.

STATE MARIJUANA LAWS THAT ADDRESS OFF-DUTY USE

In some states, employers may find relatively clear guidance within the text of their applicable marijuana laws themselves.

For example:

Please note that this list is not exhaustive. Employers should become familiar with their states’ marijuana laws to determine whether they address employers’ rights and obligations relating to workplace drug policies and off-duty marijuana use.

STATE MARIJUANA LAWS THAT DO NOT ADDRESS OFF-DUTY USE

Among the states where the applicable marijuana law is silent about whether employers may take adverse actions against employees solely because they test positive for marijuana, at least two supreme courts have sided with employers in disputes involving this issue.
In particular:

Even if an applicable marijuana law does not explicitly address employment issues relating to off-duty marijuana use, employers should be aware that state marijuana laws, especially those governing medical use, may still affect their rights and obligations under other applicable laws.

OTHER STATE and FEDERAL LAWS

As illustrated by the Massachusetts and Connecticut cases discussed above, employers in some states with legalized marijuana may face lawsuits and potential liability under state disability laws for adverse actions taken against authorized, off-duty marijuana users. Therefore, in states where a marijuana law does not address workplace drug policies and off-duty use, employers should consider either accommodating a disabled employee’s state-authorized, off-duty marijuana use or at least engaging in an interactive process with the employee to determine whether other reasonable accommodations may be suitable.

In addition, employers should become familiar with any applicable laws that specifically address workplace drug testing. For example, some states have drug testing-specific laws that require employers to have written policies and certain testing protocols in place before they may even conduct an employee drug test. Similarly, some state workers’ compensation laws prohibit claim denials or adverse employment actions based solely on positive drug tests unless certain requirements are met.

Finally, regardless of whether a state marijuana law applies, certain employers may be subject to federal drug testing requirements. For example, federal contractors may be subject to the federal Drug-Free Workplace Act , and commercial transportation operators may be subject to U.S. Department of Transportation regulations. Employers should become familiar with all applicable laws and regulations to determine their obligations.

This Compliance Overview is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.

About GDI Insurance Agency, Inc.

GDI Insurance Agency, Inc. combines years of experience with leading-edge products to provide exceptional service and value to our customers.  Our product offering includes insurance products and risk management services for commercial property and casualty, and marine; specialty coverage’s; surety; and employee benefits, including health, life, disability, and payroll deduction personal lines programs.  Contact us today for your business insurance questions 209-634-2929.

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