Employment Law Update: New Jersey Legalizes Recreational Cannabis - What Does This Mean For Employers?

3.11.2021

On February 22, the New Jersey Legislature passed the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (“CREAMMA”), enabling a new adult-use recreational cannabis (a.k.a. marijuana) market.

Although the law includes strong employment protections for use outside of work, legalizing marijuana does not mean that employees may come to work high! Employers may still prohibit marijuana use and impairment in the workplace.  This post explains some of the relevant provisions.

Non-Discrimination for Recreational Use

CREAMMA prohibits employers from discrimination of employees based on marijuana use outside of work. Therefore, employers may not:

  • refuse to hire or employ an individual who uses marijuana, unless failing to do so would cause the employer to violate a federal contract or lose federal funding; and
  • take any adverse employment action (e.g., refusing to hire an individual, discharging an employee or discriminating against an individual in compensation or in any terms or conditions of employment) against someone because they use marijuana, or based solely on a positive test result for marijuana metabolites.

Drug Testing Permitted, However Two Test Components Required

Employers may continue to conduct drug testing for marijuana, including:

  • Post-offer pre-employment
  • Reasonable suspicion of use at work
  • Reasonable suspicion of impairment
  • Post-accident
  • Random (for safety sensitive positions)

However, an employee can test positive for marijuana and not be impaired.  The employer is trying to determine impairment at the workplace and therefore, the law requires that a drug test include both “scientifically reliable objective testing methods and procedures, such as testing of blood, urine, or saliva,” and a “physical evaluation.”

The physical evaluation must be conducted by an individual certified to provide an opinion about an employee’s state of impairment related to the use of marijuana. The Cannabis Regulatory Commission will adopt standards for a “Workplace Impairment Recognition Expert” (WIRE), who must be trained to detect and identify an employee’s use or impairment from marijuana or other intoxicating substances and to assist in the investigation of workplace accidents.  This person can be in an employer’s workplace or can be a contracted third party.

If any of the above provisions result in a provable adverse impact on an employer subject to the requirements of a federal contract, then the employer may revise their employee prohibitions consistent with federal law, rules and regulations.

The State will publish regulations that are expected to provide further clarification. Once this guidance is published, we will provide an update to this legal alert. If you have any questions about this legal alert, please contact Tracy Armstrong or another Wilentz Employment Law attorney.

Disclaimer: Per federal law, under the Controlled Substances Act, marijuana is categorized as a Schedule I controlled substance.  Possession, use, distribution, and/or sale of cannabis is a Federal crime and is subject to related Federal policy, regardless of any state law that may authorize certain marijuana activity.  Compliance with state marijuana law does not equal compliance with federal law.  Legal advice provided by Wilentz, Goldman & Spitzer, P.A. is designed to counsel clients regarding the validity, scope, meaning, and application of existing and/or proposed cannabis law. Wilentz, Goldman & Spitzer, P.A. will not provide guidance or assistance in circumventing or violating Federal or state cannabis law or policy, and any advice provided by Wilentz, Goldman & Spitzer, P.A. should not be construed as such.

Tags: Employment Law UpdateRecreational CannabisCannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act

BLOG DISCLAIMER

The postings on this blog were created for general informational purposes only and do not constitute legal advice or a solicitation to provide legal services.  Although we attempt to ensure that the postings are complete, accurate, and current as of the time of publication, we assume no responsibility for their completeness, accuracy, or timeliness.  The information in this blog is not intended to create, and receipt of it does not constitute, a lawyer-client relationship.  Readers should not act upon this information without seeking professional legal counsel.

This blog may contain links to independent third party websites and services, including social media. We provide these links for your convenience, and you access them at your own risk.  We have no control over and do not monitor the content or policies (including privacy policies) of these third-party websites and have no responsibility for, and no liability with respect to, their content, accuracy, or reliability.  Unless expressly stated, we do not endorse any of the linked websites or any product, service, or publication referenced herein or therein.  We will remove a link to any site from this blog upon request of the linked entity.

We grant permission to readers to link to this blog so long as this blog is not misrepresented. This site is not sponsored or associated with any other site unless so identified.

If you wish for Wilentz, Goldman & Spitzer, P.A., to consider representing you, please obtain contact information from the Contact Us area of this blog or go to the firm’s website at www.wilentz.com.  One of our lawyers will be happy to discuss the possibility of representation with you. However, the authors of Wilentz blogs are licensed only in New Jersey and/or New York and do not wish to represent anyone who viewed this site in a state where the site fails to comply with all laws and ethical rules of that state.

Sign Up

Tracy Armstrong Photo

Tracy Armstrong
Co-Chair, Employment Law Team
Shareholder
732.855.6020