What common mistakes do some employers make as they try to navigate through evolving cannabis legislation?
Quick Answer
Not understanding their state laws, not having up-to-date policies and procedures, and not knowing how to recognize signs of impairment are common mistakes employers make as they try to navigate through evolving cannabis legislation.
Legal Perspective
CDF Labor Law LLP
Irvine, California
The confusion regarding marijuana legalization and the rapidly changing landscape of state-specific laws has created a minefield for employers, says employment law defense attorney Todd R. Wulffson, who recently contributed an in-depth article on the subject. Here are three common mistakes to avoid:
- Believing marijuana is “legal” and ignoring its potential impact in the workplace. Marijuana is a Schedule I controlled substance under the federal Controlled Substances Act. If you perform federal contracts, have employees working on federal property, or have employees subject to federal regulations (e.g. interstate truck drivers or airline pilots), you have no leeway with cannabis – your employees can never possess it or have any amount in their system. Many states have passed laws protecting individuals from prosecution under state law if they grow or possess a small amount of marijuana. One of the biggest mistakes an employer can make, however, is believing these state laws reduce potential liability for the bad acts of a stoned employee. Cannabis impairs judgment, and this is exacerbated when someone is driving or operating machinery. People under the influence also have a tendency to lose their internal filters and inhibitions and may say or do things that can lead to discrimination or retaliation claims.
- Not keeping up with cannabis laws in your state. The risk of serious liability associated with cannabis intoxication at work leads many employers to want to adopt a “zero tolerance” policy with regard to drug testing employees (i.e. any THC in one’s system is grounds for discharge). It is fine – everywhere – to have a policy that says employees cannot possess, use or be under the influence of THC on company property or on working time – but the “under the influence” part is subject to state law. Similar to alcohol – where legal intoxication is at a blood alcohol level of .08% – many states have determined when a person is deemed “intoxicated” from cannabis. State laws vary widely, so employers need to be familiar with the specifics.
- Not updating your policies and procedures. One of the most avoidable mistakes employers can make is failing to update their policies to reflect the changing cannabis legal landscape. For example, most employers have a policy that says the company conducts drug testing to ensure applicants and employees are not under the influence of “illegal” drugs at work. Employers do this to put applicants and employees on notice of testing that would otherwise be an invasion of their privacy. Savvy applicants or employees who may have lost an employment opportunity because of that policy may argue that they failed the test because of a “legal” drug and that they did not give consent to be tested for cannabis. To avoid this potential problem, employers should update their drug testing policy to define an “illegal” drug as including improper use of prescription or over-the-counter drugs, as well as “all forms of marijuana and any product containing THC.” Other examples of necessary policy and procedure updates may include smoking policies and manager training procedures.
Relevant Case Law
Ross v. RagingWire Telecommunications, Inc.
Bartolotta v. Human Res. Agency of New Britain, Inc.
Ceballos v. NP Palace, LLC, d/b/a Palace Station Hotel & Casino
HR Insight
PCC Medical Holdings
West Palm Beach, Florida
One of the biggest issues with the constantly changing cannabis laws is that even though cannabis is still considered illegal at the federal level, many states have legalized it to some extent, says Director of HR Sue Schwartz.
Employers will need to check in the state in which they work, but in Florida, a drug-free workplace policy (DFWP) can still supersede a medical marijuana card.
Also, the Americans With Disabilities Act may require reasonable accommodations for employees if they do not create a hardship for the business and for certain medical conditions but Florida law does not include medical marijuana as a qualifying accommodation.
To use the DFWP policy, it needs to be very clear and posted conspicuously. It should be included in the employee manual so that they sign for it and in the new hire package, again with a sign-off that they have received it. The employer also needs to have a defined testing protocol like pre-employment, post-accident, etc.
CertiK
New York, New York
Employers need to stay abreast of changing laws regarding the cannabis industry, according to HR Leader Erin ImHof.
What is legal in one state or municipality may not be legal in another. They should consult with trusted counsel or an HR team and update policies accordingly as laws change.
The Cost of Noncompliance
Company pays undisclosed settlement after rescinding job offer over medical marijuana
Who was involved: Phoebe-Devitt Homes d/b/a Phoebe Ministries, a continuing care retirement community in Pennsylvania, and an applicant who used medical marijuana to treat PTSD and anxiety.
What happened: According to the complaint, the applicant received an offer to be a resident care assistant. As part of a pre-employment screening, the applicant underwent a medical exam and drug test. According to the applicant, at that time, she showed her medical marijuana card and sent a copy to the company’s medical review officer. A couple of weeks later, she was notified via email that the offer was withdrawn on the basis of information collected during the pre-employment screening.
The complaint asserted the alleged conduct violated the Americans with Disabilities Act and Pennsylvania’s Medical Marijuana Act.
Result: To resolve the issue, the company agreed to pay an undisclosed settlement.
Info: Senior Home, Medical Pot User Resolve Suit Over Job Denial, 6/22/22.
ACLU: Candidate disqualified for internship over medical marijuana receives back pay, damages, attorneys’ fees
Who was involved: Darlington Fabrics Corp., a fabrics company in Rhode Island, and a candidate who was denied employment as a paid intern.
What happened: According to a lawsuit filed by the American Civil Liberties Union (ACLU), the candidate held a medical marijuana card and had participated in the medical marijuana program for two years to treat her “frequent, debilitating migraine headaches.”
When the candidate applied for the internship, she informed the company that she would not be able to pass a drug test due to the use of medical marijuana. She said the company said it could not continue the interview. She was not hired.
In the ACLU’s view, the prospective employer’s conduct amounted to violations of the state’s civil rights law and the state’s medical marijuana law.
Result: To resolve the issue, the company agreed to pay $3,500 in back pay and compensatory damages. It also agreed to:
- Pay the applicant’s attorneys’ fees, and
- Amend its drug-use policy to consider applicants who are authorized medical marijuana card holders.
Info: ACLU settles lawsuit protecting medical marijuana patients from hiring discrimination, 12/2/21.
Key Takeaways
- Be sure to familiarize yourself with applicable state law.
- Distinguish between use for medical purposes and use for recreational purposes. State laws may treat the two uses differently.
- Employers in all cases are free to ban drug-related impairment at work.
- Employers may ban recreational use at work even if state law generally permits recreational use.
- Train supervisors and managers on how to recognize signs of drug-related impairment at work.
- When selecting testing methods, consider using tests that measure impairment levels rather than the presence of non-psychoactive cannabis metabolites.
- Drug-testing requirements apply for industries involving public safety and national security roles.