Weeding Out: Marijuana Reform under Trump
Rescheduling marijuana is not a new idea, but, for the first time, it is on President Trump’s second-term agenda. Well, maybe.
Last month, the President announced that his administration is consideringreclassifying marijuana from a Schedule I to a Schedule III drug under the Federal Controlled Substances Act. The move echoes a Biden-era effort, which resulted in the Drug Enforcement Administration (DEA) publishing a proposed rescheduling rule in May 2024. That process, however, has since been halted under the Trump Administration to allow additional administrative review.
But even if marijuana were to be rescheduled, “the grass may not be all that greener”; and employers should be prepared to feel the impact of this change.
-  Legality. If rescheduled, marijuana would remain heavily regulated, though formally recognized for its medicinal value. However, the requirement that Schedule III drugs be dispensed through a prescription would prohibit recreational cannabis use, and the current tension between Federal and State law on recreational use would be amplified, not resolved. 
-  Drug testing policies. If marijuana is rescheduled from Schedule I to Schedule III, physicians would be able to prescribe – rather than merely recommend – marijuana. Workplace drug-testing policies that currently bar all medical marijuana use may require amendment as to medical marijuana while policies prohibiting recreational marijuana use would remain unaffected without additional Federal regulation changes. 
-  Benefits and Insurance. As a Schedule III drug, marijuana could eventually become an FDA-approved prescription, qualifying it for coverage under certain health care plans. Although such coverage is unlikely to be immediate, employers could see increased insurance costs and new compliance standards. 
-  Workers’ Compensation. Insurers and State systems could require workers’ compensation carriers to cover cannabis prescriptions for job-related injuries or chronic pain management. This may result in increased claim costs for employers. Moreover, additional considerations may be required if drug tests are a prerequisite to return to work after a workplace injury. 
-  Accommodation and Disability Law. Federal disabilities laws currently do not require accommodation for illegal drug use, including marijuana. However, rescheduling the drug changes the conversation and employers could see a push for employee accommodations if marijuana becomes a prescription drug. 
Bottom line: even if marijuana were to be rescheduled, it is hardly a high point for clarity, and many questions will remain unanswered until Federal regulations are promulgated to fill the gaps. Employers should continue consulting employment counsel to navigate the complex legal landscape of marijuana law.
 
            
