29

April, 2021

Cannabis Protections – NY and NJ Take Different Approaches on Employer Obligations

By Alexandra Lapes, Esq.

On March 31, 2021, New York State joined the rising number of states to fully legalize cannabis for adult users by passing the Marijuana Regulation and Taxation Act (“MRTA”).  Enacted just a month after New Jersey’s cannabis law passed, see our previous blog article here, the MRTA clarifies and establishes workplace standards related to cannabis including the rights and protections of both employers and employees, effective immediately.  The MRTA also amends New York Labor Law to protect an employee from discrimination based on the employee’s legal use of cannabis in accordance with state law, including an employee’s use of cannabis prior to the beginning or after the employee’s work hours, off the employer’s premises, and without the use of the employer’s equipment or property.

Notably, the MRTA explicitly carves out protections for medical cannabis users and expands the state’s medical cannabis program to allow clinicians to recommend medical cannabis for any condition (previously only a limited number of diseases qualified patients for medical cannabis use).  As such, under New York’s Compassionate Care Act, employees who are “Certified Patients,” and prescribed medical cannabis are deemed to have a disability under the New York State Human Rights Law and are entitled to reasonable accommodations based on their disability. In addition, the MRTA requires medical cannabis users be provided the same rights, procedures, and protections available and applicable to injured workers under the worker’s compensation law, when such injured workers are prescribed medications that may prohibit, restrict, or require the modification of the performance of their job duties.

Nevertheless, employers are not required to allow an employee to use cannabis while at work for any reason including if prescribed by a doctor, and employers may take action against any employee related to the use of cannabis if:

  1. the employer’s actions were required by state or federal statute, regulation, ordinance, or other state or federal governmental mandate;
  2. the employee is impaired by the use of cannabis while working; or
  3. the employer’s actions would cause the employer to be in violation of federal law, or would results in the loss of a federal contract or federal funding.

“Impaired by the use of cannabis” means the employee manifests specific articulable symptoms while working that decrease or lessen the employee’s job performance or such specific articulable symptoms interfere with an employer’s obligation to provide a healthy and safe workplace, as required by state and federal law.  The MRTA does not define “specific articulable symptoms”.

Consensus on Prohibiting Work While Impaired; Divergence in the Details of Drug Testing

The New York and New Jersey cannabis laws both permit employers to enact and enforce policies pertaining to cannabis in the workplace, and employers may prohibit the use, possession, or being under the influence of cannabis while in the workplace or during work hours.  Employees’ off-duty use of cannabis in accordance with each state law creates a protected class for employees against adverse action based on lawful consumption.  Furthermore, employers in both states are permitted to take adverse action against an employee who is determined to be impaired while engaged in work responsibilities or during work hours. However, employers may not make any hiring decisions based solely upon a positive drug test result.

Under New Jersey’s cannabis law, employers who conduct drug tests per the law’s permissible reasons may then use the results of that drug test when determining the appropriate employment action concerning the employee, provided the drug test satisfies two prescribed requirements: it is conducted with scientifically reliable objective testing methods and procedures (i.e. testing blood, urine, or saliva); and a physical evaluation is conducted by a “Workplace Impairment Recognition Expert” (WIRE).

New York’s cannabis law has no similar provision or requirements and is ostensibly silent on drug testing requirements or procedures in the workplace.  While New York City employers have been explicitly banned from conducting pre-employment drug tests for cannabis since May 2020, it is unclear for employers in other parts of New York State, under what circumstances an employer may use pre-employment drug tests (unless mandated by federal law), since a positive test result cannot serve as the basis for any hiring decision.

Key Takeaways

Employers should review and update their policies and procedures to ensure compliance with their respective state cannabis law and stay alert for further guidance on interpreting and applying these laws in the workplace.  Multi-state employers should be mindful of the key jurisdictional differences that impose greater requirements on New Jersey employers when conducting drug tests for cannabis.

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7

March, 2021

NJ Employers Need Special Expert’s Sign-Off Before Disciplining Based on a Positive Test for Cannabis

By Alexandra Lapes

On February 22, 2021, after nearly three years of deliberation, New Jersey became the 15th state to fully legalize cannabis for recreational and medical use.  That legalization process includes new employment law protections to users of cannabis products in certain circumstances and places significant constraints on drug testing of applicants and employees.

How We Got Here

During the November election, 67% of New Jersey voters had approved a ballot measure legalizing adult-use cannabis and a state constitutional amendment was adopted on January 1, 2021, pending regulation by the Cannabis Regulatory Commission to establish a regulated marketplace for cultivation, distribution, and the sale of cannabis.  However, lawmakers then discovered discrepancies in the legislation that were interpreted as legalizing cannabis for children and did not sign the cannabis measures into law until they reached an agreement on a clean-up bill.  In total, three adult-use cannabis reform measures were signed into law, namely, the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (“NJCREAMMA” or “legalization bill”), the decriminalizing marijuana and hashish possession bill (“decriminalization bill”), and the “clean-up bill,” clarifying cannabis use and possession penalties for individuals younger than 21 years old.

The decriminalization provisions of the cannabis bills took effect immediately upon signature.  The provisions affecting the employment relationship are not effective until the Cannabis Regulatory Commission provides rules and regulations, which is mandated within 180 days after the bill was signed into law, or within 45 days of appointment of all members of the commission, whichever is later.

Provides a New Protected Class

The NJCREAMMA prohibits employers from refusing to hire any person, or discharging, or taking any adverse action against an employee, because they use cannabis products, and explicitly protects employees from being subject to any adverse employment action solely because they have tested positive for cannabinoid metabolites.*  This is a change from prior versions of the bill, which had explicitly permitted employers to take adverse action against an employee for use of cannabis or cannabis items in certain circumstances.  While the new law thus creates a protected class for cannabis users in New Jersey, employers are still permitted to maintain drug and alcohol-free workplaces and policies, and employers can discipline employees who engage in some other prohibited conduct under the law, such as being under the influence, possessing, selling, or transporting cannabis while in the workplace.

Drug Testing Requirements

The NJCREAMMA does not require employers to drug test employees who they believe have engaged in prohibited conduct under the employer’s policy.  Instead, the law explicitly permits employers to drug test:

  • upon reasonable suspicion of an employee’s usage of a cannabis item while engaged in the performance of the employee’s work responsibilities;
  • upon finding any observable signs of intoxication related to usage of a cannabis item;
  • as random screening;
  • as pre-employment screening;
  • as regular screening of current employees to determine use during work hours; or
  • following a work-related accident subject to investigation by the employer.

The employer may then use the results of that drug test when determining the appropriate employment action concerning the employee, provided the drug test satisfies two prescribed requirements, specifically, that:

1. it is conducted with scientifically reliable objective testing methods and procedures (i.e. testing blood, urine, or saliva); and

2. a physical evaluation is conducted by a “Workplace Impairment Recognition Expert” (WIRE).

A WIRE is an individual with the necessary certification to opine on the employee’s state of impairment or lack of, related to the usage of cannabis.  To obtain a WIRE certification, an individual must be trained to detect and identify an employee’s use of cannabis items or other intoxicating substances and assist in the investigation of workplace accidents.  The Cannabis Regulatory Commission is tasked with creating minimum standards and courses of study available for full or part-time employees or others contracted to provide services on behalf of the employer, to become certified as a WIRE.

Drug and Alcohol-Free Workplaces Permitted

The NJCREAMMA states that employers are not required to amend, repeal, or otherwise affect an employer’s policy and efforts to maintain a drug and alcohol-free workplace, and employers are expressly permitted to implement and continue to enforce policies that prohibit the use, possession, or being under the influence of cannabis while in the workplace or during work hours. The NJCREAMMA also does not require an employer to permit or accommodate any personal use of cannabis activities in the workplace, and employers may take adverse employment action against any individual found to be engaging in any prohibited conduct under a workplace policy.  In addition, if the requirements of the NJCREAMMA would result in a provable adverse impact on an employer who is subject to a federal contract, then the employer may revise its employee prohibitions consist with federal law, rule, and regulations.

Questions Left Unanswered

The law is voluminous and leaves many questions unanswered about the practical implications of these new cannabis protections.  For example, if an employer suspects someone of coming to work with their ability impaired, must the employer send the employee for a drug test before taking further responsive action, or can the employer opt out of drug testing?  If the employer opts not to drug test, can it discipline or fire the person based on perceived impairment?

Clearly, if an employer does drug test, the WIRE certification is required.  However, there appear to be two competing provisions in the statute on whether a drug test is required before an employer can take any adverse employment action against an employee who comes to work apparently under the influence of cannabis.  One provision indicates that an employer is still permitted to maintain a drug and alcohol free workplace and can have policies that prohibit use of cannabis items or intoxication by employees during work hours, while another provision suggests that the WIRE certification process is not only intended for purposes of determining the reliability of a positive drug test but also to balance employers’ interest in maintaining a drug and alcohol free workplace with employees’ interest in not being improperly disciplined or discharged.

If the latter interpretation applies, then the law holds employers to a higher proof standard before taking adverse action against a cannabis user than in the event someone reports to work under the influence of alcohol.   If the former applies, then the greater protection for cannabis users only kicks in when an employer chooses to administer a drug test to an individual who is believed to be impaired, and the WIRE process essentially is meant to discourage employers from relying solely on drug tests.  Employers will need to await regulatory guidance to clarify the circumstances under which an employer needs to involve a WIRE.

Employers should review and revise their drug testing policies and procedures now to ensure they do not include any outright bans on cannabis use that are inconsistent with the NJCREAMMA and be alert for further regulations on certification standards set by the Cannabis Regulatory Commission, which may require further updates to employer policies and practices.

*Editor’s note: This article was updated 3/15/21 to correct a misstatement regarding the scope of the protection against adverse action.

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