Marijuana cardholder fired after positive drug test, loses wrongful termination claim

Since voters passed the Arizona Medical Marijuana Act (AMMA) by ballot initiative in 2010, employers have received very little court guidance regarding what constitutes discrimination or retaliation under the Act. With limited exceptions, the AMMA prohibits employers from discriminating against a registered cardholder for testing positive for marijuana components or metabolites. It doesn’t prohibit employers from taking adverse employment actions against a registered cardholder if that person used, possessed, or was impaired by marijuana on the jobsite or during working hours. Since 2010, employers have struggled with proper action following an employee-cardholder’s positive drug test. How does an employer avoid liability for wrongful termination when firing an employee-cardholder following a positive drug test?

Prelude to litigation

United Parcel Services (UPS) employee James Terry acted strangely during a sales meeting. Many of his direct reports informed UPS they observed his heavy eyelids and red eyes, saying he lost his train of thought, slurred his speech, and had hallucinations (e.g., he saw “a scorpion climbing up the wall”), among other things.