By Rick Montgomery, JD, Managing Legal Editor for ThinkHR Corporation
Every once in a while employers catch a break. In the Colorado Supreme Court case of Coats v. Dish Network, LLC, the court unanimously ruled that an employer could lawfully terminate an employee who tested positive for marijuana in a random drug test, even though the employee’s use of marijuana was off duty and prescribed under Colorado’s medical marijuana law.
The case involved Brandon Coats, a quadriplegic who used medical marijuana to control debilitating muscle spasms. Dish Network terminated Coats after a positive drug test even though he was never under the influence on company premises. Coats sued under Colorado’s “lawful activities” statute, which prohibits termination for lawful off-the-clock behavior, but the courts concluded that marijuana use is illegal under federal law and therefore not protected as “lawful” activity under the state statute.
The Colorado Supreme Court affirmed dismissal, reasoning that marijuana is a Schedule I substance under the federal Controlled Substances Act, and that use—even for medicinal purposes—remains a federal criminal offense, so the employee was not protected from termination for medical marijuana use.
Employers should review their workplace drug policies and related guidance when addressing employee marijuana use; for practical employer-focused resources see Workplace drug policy and healthcare topics: marijuana law, patient safety, HSAs.
Almost half the states have laws permitting medical marijuana use, and many of those laws are recent enough that case law is still developing. Most state medical marijuana statutes explicitly prohibit workplace use and state that employers need not accommodate marijuana use, but a few include antidiscrimination or reasonable accommodation provisions directed at employers.
Before taking adverse action against an employee who uses medical marijuana, employers should review the medical marijuana law of the state where the employee works and consult resources on legal challenges and workplace practices such as Legal Challenges of Marijuana Use in the Workplace.
When assessing discipline or termination decisions, employers should document safety or performance issues and ensure consistent application of policies. Employers that need advice about insurance implications or workplace risk management may also choose to talk to an agent.
ThinkHR will continue to monitor developments in this area.
Frequently Asked Questions
Can an employer fire an employee who uses medical marijuana off duty?
In many states employers may discipline or terminate employees who test positive for marijuana, even for off-duty medical use, depending on state law and employer policies.
Do state medical marijuana laws require employers to allow use at work?
Most state medical marijuana laws explicitly prohibit workplace use and do not require employers to accommodate marijuana use while on the job.
Should employers have a written drug-testing policy?
Yes; a clear, consistently applied drug-testing policy helps employers address safety, performance, and compliance concerns.
What should an employer do if an employee claims medical necessity for marijuana?
Employers should review applicable state law, consider safety-sensitive roles, and follow documented procedures while avoiding giving legal advice.