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New Jersey Court Ruling on Cannabis Use in Employment

Strategic Insights

— 1 min read

New Jersey's Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA) made it illegal for employers to take adverse employment action against employees for use of recreational cannabis in off-hours. However, a recent court decision highlights the complexities of this law, including the lack of a private right of action for employees. The Zanitech v. Walmart case sets a precedent for employers, but it also leaves room for future disputes and claims.

Key Takeaways:

  • The New Jersey court ruling in Zanitech v. Walmart upheld an employer's right not to hire an applicant who tested positive for cannabis, citing the lack of a private right of action in CREAMMA.
  • The court found that the State's public policy exception (Pierce claim) does not apply to job applicants, and therefore, withdrawing a job offer due to a positive cannabis test is not against public policy.
  • CREAMMA does not contain a private right of action for employees, meaning they have no recourse under the law to sue for adverse employment actions based on cannabis use.
  • Employees can still file other types of claims related to cannabis use, such as public policy exception claims (Pierce claims) if they are terminated from employment (not applicants) due to a positive cannabis test without evidence of impairment.
  • Both employees and applicants can bring disability discrimination claims if their cannabis use is medically required.
  • Employees may have grounds to sue under the New Jersey Conscientious Employee Protection Act if they face retaliation after complaining about adverse actions related to their cannabis use.
  • Employers should review their policies regarding cannabis use to ensure they are in compliance with CREAMMA and proceed with caution when taking any action regarding an employee who has tested positive for cannabis.

Statistics:

  • 2021: New Jersey enacts CREAMMA.
  • 2024: Zanitech v. Walmart court case decides that CREAMMA does not contain a private right of action for employees.
  • 2024: Court finds that the State's public policy exception (Pierce claim) does not apply to job applicants.

Sources:

  • New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA)
  • Zanitech v. Walmart (2024) court decision
  • New Jersey Conscientious Employee Protection Act
  • Stephanie Gironda and Wilentz Employment Law Team (citing related articles)

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