By: Ty Hyderally, Esq., and Nichole Nunes, Esq.
January 2, 2025

In recent years, cannabis laws have evolved rapidly, leaving employers and employees alike navigating a complex web of regulations, especially in states like New Jersey. The legalization of medical marijuana and, more recently, recreational cannabis, has introduced new challenges in balancing workplace policies with employee rights. Understanding the legal landscape in New Jersey is crucial for maintaining compliance while fostering a fair and safe work environment.

New Jersey’s approach to medical marijuana took a significant step forward with the passage of the Jake Honig Compassionate Use Medical Cannabis Act (CUMCA). This law expanded access to medical marijuana and established specific protections for registered patients. Employers are prohibited from taking adverse employment actions against an employee solely because of their status as a medical marijuana user. For example, an employee who tests positive for marijuana cannot be automatically terminated if their use is lawful and related to a medical condition.

At the same time, New Jersey employers retain certain rights. They are not required to permit employees to use marijuana during work hours or on workplace premises. Employers are also allowed to enforce drug-free workplace policies, particularly in safety-sensitive roles where impairment could pose significant risks. However, they must tread carefully to avoid discrimination claims, especially under the New Jersey Law Against Discrimination (NJLAD). This law protects employees with disabilities, and courts have ruled that medical marijuana use may qualify as reasonable accommodation under certain circumstances.

A landmark case in New Jersey, Wild v. Carriage Funeral Holdings, Inc., 241 N.J 285 (2020), highlighted the delicate balance between employee rights and employer policies. This case arose when Justin Wild, a funeral director, was fired after informing his employer that he was a registered medical marijuana patient. Wild used medical marijuana to manage pain related to cancer, but he was terminated following a positive drug test. He subsequently filed a lawsuit claiming disability discrimination under the NJLAD.

The New Jersey Supreme Court ultimately ruled in Wild’s favor, stating that the NJLAD protects employees who are registered medical marijuana patients from discrimination based on their lawful use of cannabis outside the workplace. The court emphasized that an employee’s medical marijuana use does not exempt them from job performance standards or safety requirements but affirmed that employers must engage in an interactive process to explore reasonable accommodations. This decision underscored the importance of distinguishing between off-duty, lawful medical marijuana use and impairment on the job.

The Wild case has had significant implications for New Jersey employers. It serves as a reminder that employers cannot rely solely on a positive drug test to justify adverse employment actions against registered medical marijuana patients. Instead, they must consider the context of the employee’s cannabis use, including whether it affects workplace performance or safety. Employers are also encouraged to revise their drug testing policies and procedures to align with this precedent.

For employers, these legal developments call for a proactive approach. Workplace policies should clearly define expectations around cannabis use, impairment, and drug testing while adhering to state laws. It is essential to focus on performance and safety rather than the mere presence of THC in an employee’s system. Employers should also stay informed about evolving legal standards and engage legal counsel to ensure compliance.

For employees, understanding your rights under New Jersey law is equally important. If you are a registered medical marijuana patient, communicate openly with your employer about your needs. Request accommodations if necessary and be prepared to demonstrate that your use does not impair your ability to perform your job duties.

As the legal and cultural landscape surrounding cannabis continues to shift, New Jersey remains at the forefront of integrating these changes into the workplace. By fostering dialogue, revising policies, and staying informed, employers and employees can work together to navigate this evolving terrain while maintaining fairness, safety, and productivity.

En nuestra firma hablamos español. This blog is for informational purposes only. It does not constitute legal advice and may not reasonably be relied upon as such. If you face a legal issue, you should consult a qualified attorney for independent legal advice with regard to your particular set of facts. This blog may constitute attorney advertising. This blog is not intended to communicate with anyone in a state or other jurisdiction where such a blog may fail to comply with all laws and ethical rules of that state or jurisdiction.