Medical Marijuana in the
Workplace
John J. Sarno, Esq.
Employers Association of New Jersey
2
N.J. Compassionate Use
Medical Marijuana Act
Effective: April 18, 2010
15th state to authorize use of medical
marijuana, first in region.
3
4
Smith v. Live Wire Telecom
Superior Court of N.J. (2010)
The Facts:
As a result of injuries sustained during
military service in Iraq, Paul Smith suffers
from chronic back pain and muscle spasms.
After muscle relaxants and conventional
medications failed to provide relief, Smith’s
doctor prescribed use of marijuana on an as
needed basis to counteract spasms, relieve
pain and to induce sleep before bedtime.
5
As a systems analyst at Live Wire Telecom, Smith’s
job performance has always been top rate before and
after his tour of duty. His attendance is excellent and
he has received merit-based performance bonuses.
Prior to Live Wire instituting its drug testing policy,
Smith had been regularly using his marijuana
prescription for about 8 months. But at the time of
the drug test, as his pain and spasms had improved,
Smith had been using marijuana about two or three
times per month for the last two months.
6
Live Wire’s drug test was recommended as a best
practice, but not required, under a new contract with
the U.S. Department of Defense, for which Smith and
most other employees would be working. Smith
tested positive for marijuana that he had used about
10-days before the test. He informed HR of his
prescription and provided a doctor’s note. However,
two days later Smith was informed that due to failing
the drug test, he could not work on the contract. He
was also told that due to the reorganization that was
required to meet the contract’s demands, his old job
was eliminated.
7
Smith files suit alleging violations
under the N.J. Compassionate Use
Medical Marijuana Act (the “Medical
Marijuana Act”), the Americans with
Disabilities Act (ADA), the N.J. Law
Against Discrimination (LAD), the
Family Medical Leave Act (FMLA), the
Health Insurance Portability Act
(HIPAA) and common law wrongful
discharge.
8
Questions:
 Does the Medical Marijuana Act provide a
private right of action?
 Does terminating an employee using medical
marijuana violate the ADA or LAD?
 Does the ADA or LAD require reasonable
accommodations?
 Does the FMLA require a leave of absence for
medical marijuana use?
 Does HIPAA or ADA privacy rules apply?
 Do the circumstances of the discharge create
an exception to the employment at-will rule?
9
The Medical Marijuana Act
Legislative Findings –
99% of marijuana arrests are made under state
law
Federal law prohibits the use of marijuana as a
controlled substance, although some states permit
medical use
States are not required to enforce federal law,
therefore compliance with this Act does not put
the State of New Jersey in violation of federal law
10
Medical Marijuana Act
(continued)
• Authorizes use of prescribed amounts of marijuana
by a “qualified patient”.
“Qualified patient” means a person who has been
diagnosed as having a “debilitating medical
condition”.
“Debilitating medical condition” means a chronic or
debilitating disease or medical condition that
produces severe or chronic pain, severe nausea,
severe and persistent muscle spasms, or other
condition approved by the N.J. Department of
Health.
11
 A qualified patient will be issued a Registry ID card.
 A qualified patient is not subject to arrest, prosecution
or penalty.
 Cannot use medical marijuana while operating a
vehicle or in a public recreation location or near school.
 Nothing in the Act requires health insurance
reimbursement.
 Nothing in the Act requires an employer to
accommodate the medical use of marijuana “in any
workplace”.
12
Does the Medical Marijuana Act create a private
right of action by an employee against an
employer?
A: Not likely
Johnson v. Columbia Falls Aluminum Co.
Montana (2009)
Employee failed to inform employer of
medical marijuana use, failed drug test, and
declined to sign “last chance” agreement.
Employee suspended and later fired
13
Montana law provides that it does not require
employers “to accommodate the medical use
of marijuana in any workplace”.
Court finds that this language does not
support a private lawsuit brought by an
employee against an employer alleging a
violation of the Medical Marijuana Law.
14
Factors a court will likely consider:
1. whether a statute creates a “special
benefit” for a class of persons;
2. whether the Legislative history
suggests that the Legislature
intended to create a private remedy;
3. whether granting a private action
furthers the law.
15
Can Smith be fired for failing
the drug test?
A: Discharge most likely does not violate
the ADA under the facts of the case.
16
Americans with Disabilities Act
Title I
“No [employer] shall discriminate against a
qualified person with a disability because of
the disability of such individual in regard to
job application procedures, the hiring,
advancement, or discharge of employees,
employee compensation, job training, and
other terms, conditions, and privileges of
employment.”
17
Discrimination
 Limiting job opportunities
 Using standards or selection criteria that have the effect of
discrimination
 Denying equal benefits
 Not making reasonable accommodation
 Failing to account for a disability when administering
employment tests
 Failing to account for a disability when measuring skills,
aptitudes or performance
 Conducting pre-employment medical examinations as to
the nature or severity of a disability (post offer
examinations must be job related and consistent with
business necessity)
• Disparate Impact Discrimination
Medical examinations that may unjustifiably
discriminate. Medical exams must be job-
related and consistent with business
necessity.
• Disparate Treatment Discrimination
Unequal treatment. Employer needs a non-
discriminatory reason.
18
19
“Reasonable Accommodation”
may include:
1. Making existing facilities used by employees
readily accessible to and usable by individuals with
disabilities; or
2. Job restructuring, part-time or modified work
schedules, reassignment to a vacant position,
acquisition or modification of equipment or
devices, appropriate adjustment or modifications of
examination, training materials or policies, the
provision of qualified readers or interpreters, and
other similar accommodations for individuals with
disabilities
20
The ADA permits an employer to adopt
or administer reasonable policies or
procedures, including drug testing.
“Qualified person with a disability”
does not include any applicant or
employee who is currently engaging in
illegal use of drugs.
21
Since the marijuana has been prescribed
under N.J. law, Smith may not be engaging
in the “illegal use of drugs” under state law
(but would still be under federal law).
In either case, he is using an “illegal drug”.
22
Ross v. Ragingwire
Telecommunications, Inc.
California Supreme Court (2008)
Finds that marijuana remains illegal
under federal law and that California’s
Compassionate Use Act did not “take the
additional step of requiring employers to
accommodate marijuana use by their
employees”.
23
Even though Smith is not engaging in
the “illegal use of drugs”, he is not a
“qualified” person with a disability
because he tested positive for an “illegal
drug”.
24
What about “reasonable
accommodation”?
Is the employer required to modify its drug
testing policy as it applies to persons with
disabilities who use medical marijuana?
A: Not in this case
The Medical Marijuana Act states “nothing in
the law should be read to require employers
to accommodate the medical use of marijuana
in any workplace”.
25
Raytheon v. Hernandez
U.S. Supreme Court (2003)
Employer’s refusal to rehire employee
who tested positive for illegal drugs
under a no-rehire policy “for cause”
upheld even though employee was no
longer using illegal drugs.
26
“Qualified person with a disability” does not include
any applicant or employee who is currently
engaging in illegal use of drugs.
However, a qualified person with a disability may be a
person who:
1. Has successfully completed a supervised drug
rehabilitation program and who is no longer engaging
in the illegal use of drugs,
2. Is participating in a supervised rehabilitation program
and is no longer engaging in the illegal use of drugs, or
3. Is erroneously regarded as engaging in illegal use of
drugs but is not engaging in such use.
27
Failure to re-hire was for a legitimate
nondiscriminatory reason: being fired
“for cause”. Employer’s non-rehire
policy “is a quintessential legitimate,
non discriminatory reason for refusing
to rehire an employee who was
terminated for violating workplace
conduct rules”.
Since marijuana can be prescribed to treat
a disabling condition, a test for
marijuana may be considered a
“medical examination.”
Medical examinations must be job-related
and consistent with business necessity.
28
Reasonable belief, based on objective
evidence that
1) An employee’s ability to perform
essential functions is or will be
impaired by a medical condition, or
2) An employee will pose a direct threat
29
30
“Direct Threat”
“Significant risk of substantial harm to the
health or safety of the individual or other
that can be eliminated or reduced by
reasonable accommodation.”
31
The Medical Marijuana Act does not compel
employers to consider accommodations “in
any workplace”.
But what about time off to try other
medications that would not violate the drug
test?
32
Permitting the use of accrued paid leave
or unpaid leave is a form of reasonable
accommodation under ADA
Obtaining treatment
Recuperation
33
Employer may be required to grant a
reasonable time to change medications
and re-test.
Many policies already allow time for
treatment for substance abuse.
Family Medical Leave Act
Time off for employee’s “serious health
condition”
34
35
Serious Health Condition
Illness, physical or mental condition requiring:
1) Inpatient care
2) Incapacity for more than three days with treatment by health care
provider…
a) two or more times,
first visit within 7 days and subsequent w/in 30 days of
incapacity
b) one time (w/in 7 days of incapacity) with continuing regimen
3) Incapacity due to pregnancy
4) Incapacity due to chronic, (requires periodic dr. visits at least twice a
year) permanent, or long-term condition or for multiple
treatments
If employee is unable to perform essential
functions of the job, the ADA may
apply.
Employee who violates company drug
policy is not performing essential
functions.
No need to accommodate, i.e.: modify
drug policy
36
37
N.J. Law Against Discrimination
Unless it can be clearly shown that a person’s
disability would prevent such person from
performing a particular job, it is an unlawful
employment practice to deny an otherwise
qualified person with a disability the opportunity
to obtain or maintain employment, or to advance
in position solely because such person is disabled.
Requires reasonable accommodations
38
Ross v. Ragingwire
Telecommunications
California Supreme Court (2008)
California Fair Employment Act requires
reasonable accommodations but medical
marijuana use conflicts with employers’ drug
testing policy.
Nothing in the Medical Marijuana suggests it
was intended to “address the respective rights
and obligations of employers and employees”.
39
LAD analysis will most likely
follow the ADA analysis
Employer will not be required to
modify drug test
Employer may be required to grant
time off, under the circumstances, if
reasonable and allow a re-test.
40
What About At-Will Employment?
An employer can discharge an at-will employee
with or without cause, with or without notice, for
any or no reason.
unless
The discharge is “incompatible with a clear
mandate of public policy”.
Public policy must be “firmly grounded” not
“vague, controversial, unsettled or problematic”.
41
Hampton v. Armand Corporation
N.J. App. Div (2004)
Court rules that employee who is not eligible
for FMLA leave could be fired while on sick
leave. Does the FMLA create a clear mandate
of public policy?
NO: FMLA job protection is expressly limited
to eligibility criteria.
Court observes that some discharges offend
public policy such as firing an employee for
bringing a workers’ compensation claim.
However, in that situation, the WC statute
creates public policy.
42
Does the Medical Marijuana Act create a
“clear mandate of public policy” restricting
the right of employers to make a discharge
decision?
The only mention of “employer” states that
employers do not have to provide
accommodations but the ADA/LAD is
violated when employee is fired for using
prescription drugs.
Health Insurance Portability
and Accountability Act (HIPAA)
Employment decisions can be based on
the results of a physical or drug test.
Employee must authorize disclosure to
employer. Disclosure can be a
condition of hire or return to work.
43
Employer would not be violating privacy
rules, since employee would be
authorizing disclosure.
44
What happens when employee discloses
medical marijuana use?
Does it violate company policy? If so,
then what?
Employer may be required to grant time
off to change medications.
45
ADA Privacy Rules
Employer can not make a “medical
inquiry” without justification.
Medical inquiry includes asking an
employee about prescription drugs.
46
Employer can make a medical inquiry if
there is:
1) Objective evidence that a medical
condition is impairing the performance
of essential job functions, or
2) Objective evidence suggests employee
poses a “direct threat.”
47
48
It is not likely that Smith’s discharge
violates a “clear mandate of public
policy”. Medical Marijuana Act governs
medical care not employment relations—
although it may require the N.J. Supreme
Court to pass final judgment.
49
What about job candidates?
A: Follow the ADA/LAD analysis
Not required to modify or waive drug
test.
May be required to offer a re-test, if
reasonable.
50
Questions?
Thank You

Medical Marijuana in the Workplace

  • 1.
    Medical Marijuana inthe Workplace John J. Sarno, Esq. Employers Association of New Jersey
  • 2.
    2 N.J. Compassionate Use MedicalMarijuana Act Effective: April 18, 2010 15th state to authorize use of medical marijuana, first in region.
  • 3.
  • 4.
    4 Smith v. LiveWire Telecom Superior Court of N.J. (2010) The Facts: As a result of injuries sustained during military service in Iraq, Paul Smith suffers from chronic back pain and muscle spasms. After muscle relaxants and conventional medications failed to provide relief, Smith’s doctor prescribed use of marijuana on an as needed basis to counteract spasms, relieve pain and to induce sleep before bedtime.
  • 5.
    5 As a systemsanalyst at Live Wire Telecom, Smith’s job performance has always been top rate before and after his tour of duty. His attendance is excellent and he has received merit-based performance bonuses. Prior to Live Wire instituting its drug testing policy, Smith had been regularly using his marijuana prescription for about 8 months. But at the time of the drug test, as his pain and spasms had improved, Smith had been using marijuana about two or three times per month for the last two months.
  • 6.
    6 Live Wire’s drugtest was recommended as a best practice, but not required, under a new contract with the U.S. Department of Defense, for which Smith and most other employees would be working. Smith tested positive for marijuana that he had used about 10-days before the test. He informed HR of his prescription and provided a doctor’s note. However, two days later Smith was informed that due to failing the drug test, he could not work on the contract. He was also told that due to the reorganization that was required to meet the contract’s demands, his old job was eliminated.
  • 7.
    7 Smith files suitalleging violations under the N.J. Compassionate Use Medical Marijuana Act (the “Medical Marijuana Act”), the Americans with Disabilities Act (ADA), the N.J. Law Against Discrimination (LAD), the Family Medical Leave Act (FMLA), the Health Insurance Portability Act (HIPAA) and common law wrongful discharge.
  • 8.
    8 Questions:  Does theMedical Marijuana Act provide a private right of action?  Does terminating an employee using medical marijuana violate the ADA or LAD?  Does the ADA or LAD require reasonable accommodations?  Does the FMLA require a leave of absence for medical marijuana use?  Does HIPAA or ADA privacy rules apply?  Do the circumstances of the discharge create an exception to the employment at-will rule?
  • 9.
    9 The Medical MarijuanaAct Legislative Findings – 99% of marijuana arrests are made under state law Federal law prohibits the use of marijuana as a controlled substance, although some states permit medical use States are not required to enforce federal law, therefore compliance with this Act does not put the State of New Jersey in violation of federal law
  • 10.
    10 Medical Marijuana Act (continued) •Authorizes use of prescribed amounts of marijuana by a “qualified patient”. “Qualified patient” means a person who has been diagnosed as having a “debilitating medical condition”. “Debilitating medical condition” means a chronic or debilitating disease or medical condition that produces severe or chronic pain, severe nausea, severe and persistent muscle spasms, or other condition approved by the N.J. Department of Health.
  • 11.
    11  A qualifiedpatient will be issued a Registry ID card.  A qualified patient is not subject to arrest, prosecution or penalty.  Cannot use medical marijuana while operating a vehicle or in a public recreation location or near school.  Nothing in the Act requires health insurance reimbursement.  Nothing in the Act requires an employer to accommodate the medical use of marijuana “in any workplace”.
  • 12.
    12 Does the MedicalMarijuana Act create a private right of action by an employee against an employer? A: Not likely Johnson v. Columbia Falls Aluminum Co. Montana (2009) Employee failed to inform employer of medical marijuana use, failed drug test, and declined to sign “last chance” agreement. Employee suspended and later fired
  • 13.
    13 Montana law providesthat it does not require employers “to accommodate the medical use of marijuana in any workplace”. Court finds that this language does not support a private lawsuit brought by an employee against an employer alleging a violation of the Medical Marijuana Law.
  • 14.
    14 Factors a courtwill likely consider: 1. whether a statute creates a “special benefit” for a class of persons; 2. whether the Legislative history suggests that the Legislature intended to create a private remedy; 3. whether granting a private action furthers the law.
  • 15.
    15 Can Smith befired for failing the drug test? A: Discharge most likely does not violate the ADA under the facts of the case.
  • 16.
    16 Americans with DisabilitiesAct Title I “No [employer] shall discriminate against a qualified person with a disability because of the disability of such individual in regard to job application procedures, the hiring, advancement, or discharge of employees, employee compensation, job training, and other terms, conditions, and privileges of employment.”
  • 17.
    17 Discrimination  Limiting jobopportunities  Using standards or selection criteria that have the effect of discrimination  Denying equal benefits  Not making reasonable accommodation  Failing to account for a disability when administering employment tests  Failing to account for a disability when measuring skills, aptitudes or performance  Conducting pre-employment medical examinations as to the nature or severity of a disability (post offer examinations must be job related and consistent with business necessity)
  • 18.
    • Disparate ImpactDiscrimination Medical examinations that may unjustifiably discriminate. Medical exams must be job- related and consistent with business necessity. • Disparate Treatment Discrimination Unequal treatment. Employer needs a non- discriminatory reason. 18
  • 19.
    19 “Reasonable Accommodation” may include: 1.Making existing facilities used by employees readily accessible to and usable by individuals with disabilities; or 2. Job restructuring, part-time or modified work schedules, reassignment to a vacant position, acquisition or modification of equipment or devices, appropriate adjustment or modifications of examination, training materials or policies, the provision of qualified readers or interpreters, and other similar accommodations for individuals with disabilities
  • 20.
    20 The ADA permitsan employer to adopt or administer reasonable policies or procedures, including drug testing. “Qualified person with a disability” does not include any applicant or employee who is currently engaging in illegal use of drugs.
  • 21.
    21 Since the marijuanahas been prescribed under N.J. law, Smith may not be engaging in the “illegal use of drugs” under state law (but would still be under federal law). In either case, he is using an “illegal drug”.
  • 22.
    22 Ross v. Ragingwire Telecommunications,Inc. California Supreme Court (2008) Finds that marijuana remains illegal under federal law and that California’s Compassionate Use Act did not “take the additional step of requiring employers to accommodate marijuana use by their employees”.
  • 23.
    23 Even though Smithis not engaging in the “illegal use of drugs”, he is not a “qualified” person with a disability because he tested positive for an “illegal drug”.
  • 24.
    24 What about “reasonable accommodation”? Isthe employer required to modify its drug testing policy as it applies to persons with disabilities who use medical marijuana? A: Not in this case The Medical Marijuana Act states “nothing in the law should be read to require employers to accommodate the medical use of marijuana in any workplace”.
  • 25.
    25 Raytheon v. Hernandez U.S.Supreme Court (2003) Employer’s refusal to rehire employee who tested positive for illegal drugs under a no-rehire policy “for cause” upheld even though employee was no longer using illegal drugs.
  • 26.
    26 “Qualified person witha disability” does not include any applicant or employee who is currently engaging in illegal use of drugs. However, a qualified person with a disability may be a person who: 1. Has successfully completed a supervised drug rehabilitation program and who is no longer engaging in the illegal use of drugs, 2. Is participating in a supervised rehabilitation program and is no longer engaging in the illegal use of drugs, or 3. Is erroneously regarded as engaging in illegal use of drugs but is not engaging in such use.
  • 27.
    27 Failure to re-hirewas for a legitimate nondiscriminatory reason: being fired “for cause”. Employer’s non-rehire policy “is a quintessential legitimate, non discriminatory reason for refusing to rehire an employee who was terminated for violating workplace conduct rules”.
  • 28.
    Since marijuana canbe prescribed to treat a disabling condition, a test for marijuana may be considered a “medical examination.” Medical examinations must be job-related and consistent with business necessity. 28
  • 29.
    Reasonable belief, basedon objective evidence that 1) An employee’s ability to perform essential functions is or will be impaired by a medical condition, or 2) An employee will pose a direct threat 29
  • 30.
    30 “Direct Threat” “Significant riskof substantial harm to the health or safety of the individual or other that can be eliminated or reduced by reasonable accommodation.”
  • 31.
    31 The Medical MarijuanaAct does not compel employers to consider accommodations “in any workplace”. But what about time off to try other medications that would not violate the drug test?
  • 32.
    32 Permitting the useof accrued paid leave or unpaid leave is a form of reasonable accommodation under ADA Obtaining treatment Recuperation
  • 33.
    33 Employer may berequired to grant a reasonable time to change medications and re-test. Many policies already allow time for treatment for substance abuse.
  • 34.
    Family Medical LeaveAct Time off for employee’s “serious health condition” 34
  • 35.
    35 Serious Health Condition Illness,physical or mental condition requiring: 1) Inpatient care 2) Incapacity for more than three days with treatment by health care provider… a) two or more times, first visit within 7 days and subsequent w/in 30 days of incapacity b) one time (w/in 7 days of incapacity) with continuing regimen 3) Incapacity due to pregnancy 4) Incapacity due to chronic, (requires periodic dr. visits at least twice a year) permanent, or long-term condition or for multiple treatments
  • 36.
    If employee isunable to perform essential functions of the job, the ADA may apply. Employee who violates company drug policy is not performing essential functions. No need to accommodate, i.e.: modify drug policy 36
  • 37.
    37 N.J. Law AgainstDiscrimination Unless it can be clearly shown that a person’s disability would prevent such person from performing a particular job, it is an unlawful employment practice to deny an otherwise qualified person with a disability the opportunity to obtain or maintain employment, or to advance in position solely because such person is disabled. Requires reasonable accommodations
  • 38.
    38 Ross v. Ragingwire Telecommunications CaliforniaSupreme Court (2008) California Fair Employment Act requires reasonable accommodations but medical marijuana use conflicts with employers’ drug testing policy. Nothing in the Medical Marijuana suggests it was intended to “address the respective rights and obligations of employers and employees”.
  • 39.
    39 LAD analysis willmost likely follow the ADA analysis Employer will not be required to modify drug test Employer may be required to grant time off, under the circumstances, if reasonable and allow a re-test.
  • 40.
    40 What About At-WillEmployment? An employer can discharge an at-will employee with or without cause, with or without notice, for any or no reason. unless The discharge is “incompatible with a clear mandate of public policy”. Public policy must be “firmly grounded” not “vague, controversial, unsettled or problematic”.
  • 41.
    41 Hampton v. ArmandCorporation N.J. App. Div (2004) Court rules that employee who is not eligible for FMLA leave could be fired while on sick leave. Does the FMLA create a clear mandate of public policy? NO: FMLA job protection is expressly limited to eligibility criteria. Court observes that some discharges offend public policy such as firing an employee for bringing a workers’ compensation claim. However, in that situation, the WC statute creates public policy.
  • 42.
    42 Does the MedicalMarijuana Act create a “clear mandate of public policy” restricting the right of employers to make a discharge decision? The only mention of “employer” states that employers do not have to provide accommodations but the ADA/LAD is violated when employee is fired for using prescription drugs.
  • 43.
    Health Insurance Portability andAccountability Act (HIPAA) Employment decisions can be based on the results of a physical or drug test. Employee must authorize disclosure to employer. Disclosure can be a condition of hire or return to work. 43
  • 44.
    Employer would notbe violating privacy rules, since employee would be authorizing disclosure. 44
  • 45.
    What happens whenemployee discloses medical marijuana use? Does it violate company policy? If so, then what? Employer may be required to grant time off to change medications. 45
  • 46.
    ADA Privacy Rules Employercan not make a “medical inquiry” without justification. Medical inquiry includes asking an employee about prescription drugs. 46
  • 47.
    Employer can makea medical inquiry if there is: 1) Objective evidence that a medical condition is impairing the performance of essential job functions, or 2) Objective evidence suggests employee poses a “direct threat.” 47
  • 48.
    48 It is notlikely that Smith’s discharge violates a “clear mandate of public policy”. Medical Marijuana Act governs medical care not employment relations— although it may require the N.J. Supreme Court to pass final judgment.
  • 49.
    49 What about jobcandidates? A: Follow the ADA/LAD analysis Not required to modify or waive drug test. May be required to offer a re-test, if reasonable.
  • 50.