Wednesday, August 27, 2025

Marijuana legalization ≠ job protection


In Flannery v. Peco Foods, the 8th Circuit just provided a sharp reminder of how far the gap can be between what's "legal" for individuals and what's protected in the workplace.Flannery was fired after a drug test showed THC in his system. He said it came from CBD oil, pointed to the company handbook, and argued his levels were under the listed threshold. None of it mattered. He worked in an at-will employment state, and the court said plainly: employers can terminate "for good cause, no cause, or even a morally wrong cause."

That same lesson applies in Ohio, even after the state legalized recreational marijuana use last year and medical marijuana five years earlier.

Here's what Ohio law says about marijuana and employment:

Employers may prohibit use.
The statute expressly allows employers to maintain drug-free workplace policies. If your handbook says "zero tolerance," legalization doesn't change that.

Employers may test for marijuana.
Nothing in the law restricts drug testing for cannabis. Employers can continue to screen applicants and employees.

Employers may discipline or terminate.
An employee who tests positive—even for lawful off-duty use—can be fired. There's no protection under Ohio law, even if marijuana was consumed legally and outside of work hours.

No wrongful-discharge claim.
The statute makes clear that firing someone for cannabis use does not create a cause of action. In other words, employees cannot sue for being terminated after a positive test.

Unemployment benefits may be denied.
If the termination is for violating a drug policy, that can disqualify the employee from unemployment compensation.

Ohio's legalization of marijuana is a criminal law reform, not an employment law reform. Employers hold the cards, and the law explicitly protects their right to enforce drug policies as they see fit.

Employers, if you want to prohibit your employees from using cannabis, review your policies and communicate clearly. If you intend to enforce a zero-tolerance rule, spell it out and apply it consistently. If you're considering relaxing your policy, weigh the risks—especially around safety-sensitive roles, federal contracts, and workers' comp discounts tied to drug-free workplace programs.

No one should assume that what's legal in the dispensary is legal in the workplace. A positive test can still mean discipline, termination, and ineligibility for unemployment.