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What employers need to know about Alabama's new medical marijuana law

June 2021 employment law letter
Authors: 
Albert L. Vreeland, Lehr Middlebrooks Vreeland & Thompson P.C.

Governor Kay Ivey recently signed Alabama's new medical marijuana law, joining more than 30 other states to permit physician-prescribed use of the drug for certain medical conditions. Although the legislation decriminalizes prescribed use under state law, it remains illegal under federal law.

Highlights of new legislation

The new legislation has prompted many Alabama businesses to consider whether to revise their own policies for off-duty marijuana use and allow the medical exemptions. Although you can accommodate prescribed use, you aren't required to do so under the new law.

In fact, the law has several provisions specifically protecting employers' existing rights to prohibit drug use:

  • You aren't required to permit marijuana use at all or accommodate an employee's medical marijuana use (including altering the individual's job duties);
  • Employer-provided health insurance coverage isn't required to cover prescription marijuana's costs;
  • You may take an adverse job action (e.g., refuse to hire, fire, or discipline) against an employee who uses marijuana, even with a prescription and regardless of the lack of impairment on the job; and
  • You can adopt a policy requiring employees to notify you that they possess a medical cannabis card.

You may maintain your drug testing policy, including any drug-free-workplace program and U.S. Department of Transportation (DOT)-compliant testing programs. The new state law doesn't alter the workers' compensation premium discount for businesses with drug-free programs or your right to deny benefits based on a positive test.

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