Aug 04, 2021

Cannabis Laws Affecting Employers: State Laws and Employer Guidance

As medical and recreational cannabis laws evolve, and with federal law currently in opposition to many state laws, employers face challenges when developing workplace drug policies and understanding their limitations in the area of drug testing. Use the enclosed best practice recommendations and chart to see how YOUR business may be affected!

 

Best Practices and Tips for Employers

This guide generally uses the word cannabis to refer to marijuana because cannabis is the more scientifically accurate name. For HR purposes, however, the terms cannabis and marijuana are interchangeable. Nonetheless, to avoid possible confusion, the state-specific notes below use whichever term the particular law uses.

State laws regarding cannabis change rapidly compared to other employment laws. Consequently, recent changes may not be reflected here. The chart featured below is general HR guidance; employers with additional questions should contact an attorney for a legal opinion as well as their insurance carriers.

Cannabis laws vary from state to state. Multistate employers should review the laws of all states where they have employees. 

Employers should be aware that other laws (besides the state cannabis law) may implicate employers’ ability to regulate employee cannabis use,including but not limited to:

1. Federal laws (e.g., Department of Transportation regulations, the Drug Free Workplace Act);

2. State disability discrimination law;

3. Lawful off-duty conduct law;

4. Religious accommodations;

5. Wrongful termination in violation of public policy; and

6. State drug testing law.

Currently, employers may have a drug policy prohibiting employees from using or working under the influence of cannabis. However, employers should review potential obligations under both the applicable cannabis law and the laws listed above when they apply their policy. If an employee requests an accommodation to use cannabis during work or to work while under the influence of cannabis, employers should consult with an attorney. 

From an HR perspective, the risk-tolerant approach is usually to terminate an employee who tests positive for cannabis and deal with a potential lawsuit. In contrast, the risk-averse approach is usually to accommodate off-duty cannabis use (absent undue hardship or direct threat).

Employers should note that municipal cannabis laws, eligibility for unemployment insurance, and covered expenses under workers’ compensation laws are outside the scope of this chart. Click the link below to view the full cannabis law chart for all fifty states!


Related Documents:

 

MORE RECENT NEWS…


Jun 04, 2025

What Is Key Person Insurance and Do You Need It?

Have you heard of key person insurance? This is a type of life insurance policy that may positively benefit your business’s continuity, though it has both tax and financial implications. Read through to see whether key person insurance is right for your company.


Jun 03, 2025

Is This Your Situation: Managing Tax Rules for Part-Time or Seasonal Help

Do you have questions about the tax treatment of payments for part-time and seasonal help? These employees are subject to the same rules that apply to all employees — with some twists. Read through for some help on tax rules regarding part-time and seasonal help.


Jun 02, 2025

Is This Your Situation: Your Business Is Spread Over Multiple States

Expanding your business across multiple states can bring a lot of rewards, but you need to be aware of a variety of practical issues. Read through for an introduction to cross-border management issues.


Jun 01, 2025

Hiring Rules for US Employers

Employers must verify the identity and employment authorization of individuals hired to work in the United States. Read through to understand the key requirements.


May 08, 2025

Strategic Business Plans: Learning From COVID-19

Business plans have to be flexible because they need to be adaptable to factors that could affect them in the future. That's why management always has to be on the lookout. Read through for some advice on creating strategic business plans in the post-COVID-19 world.


May 07, 2025

Rethinking Mandatory Retirement

While mandatory retirement policies have largely been abolished, some still affect certain professions and perpetuate age-related stereotypes. Advances in medical care and healthier lifestyles allow many workers to remain productive well beyond traditional retirement ages. Read through to explore the challenges and opportunities involved in replacing outdated policies with fairer, capability-based approaches.




More News & Press can be found in our Archive.