2025 Marijuana Laws And The Workplace: What Employers Must Know
.webp)
2025 in Review: How Cannabis Legalization Shaped the Workplace
As 2025 draws to a close, the impact of cannabis legalization on the workplace continues to grow more complex. While federal reform remains stalled, state-level legislation has created some of the most significant compliance challenges for employers—particularly around drug testing, accommodation obligations, and employee discipline. This year brought a flurry of activity, from newly legalized markets to laws that clarified—or in some cases blurred—the rules of engagement for employers.
Here’s a look back at the key cannabis-related developments that defined the employment landscape in 2025.
Minnesota: Employers Must Justify Actions
Minnesota made headlines with Senate File 2370, effective May 24, 2025. The law now requires employers to give registered medical cannabis patients 14 days’ written notice before taking adverse action based on a positive drug test. Crucially, the notice must reference the specific federal statute or regulation at risk—not just a general “federal law” citation.
Minnesota has long barred most pre-employment cannabis testing and classified marijuana as a “lawful consumable product.” SF 2370 adds another layer of complexity, requiring employers—especially in federally regulated industries—to clearly articulate why a positive test necessitates action. Blanket drug-free policies are increasingly untenable in the state.
Texas: Expanded Access, But Workplace Rights Lag
Texas significantly expanded its Compassionate-Use Program under House Bill 46, adding conditions such as PTSD, chronic pain, and Crohn’s disease. THC limits were raised to 10 mg per dose, and inhalation via medical devices is now authorized.
However, employment protections remain unchanged. Employers can still test for THC, disqualify applicants, and discipline employees who test positive. As medical access grows, workplaces in Texas will see more employees testing positive—but the law does not protect those workers.
Massachusetts: Pre-Employment Testing Under Scrutiny
Massachusetts advanced House Bill 2179, which, if enacted, would prohibit most pre-employment marijuana testing. Employers could still conduct post-offer testing, but rescinding an offer based on a positive marijuana screen would generally only be allowed for safety-sensitive roles.
Even without a signed law, this shift signals that past cannabis use should no longer automatically disqualify candidates. Employers in Massachusetts may need to rethink whether routine testing serves a legitimate business need in non-safety-sensitive positions.
Pennsylvania: Legalization Momentum Without Worker Protections
Pennsylvania saw renewed adult-use legalization efforts in 2025. House Bill 1200 passed the House but stalled in the Senate, and a subsequent attempt, HB 1735, similarly preserved current employment rules, allowing employers to test, discipline, and enforce zero-tolerance policies.
Local ordinances in Philadelphia and Pittsburgh provide limited protections for medical cannabis users, including bans on pre-employment testing in some roles. Overall, workplace protections remain uneven, even as legalization gains traction.
New Hampshire: Legalization Omits Labor Safeguards
New Hampshire considered House Bill 186, which would have allowed adult-use sales and personal possession, along with a 15% excise tax. The bill passed the House but stalled in the Senate.
Unlike Minnesota, the legislation did not include workplace protections, leaving employers free to maintain zero-tolerance policies. This omission highlights the ongoing challenge: legalization does not automatically translate to employee rights.
Iowa: Practical Compliance Updates
Iowa didn’t change cannabis legality but updated its drug testing statute. Employers can now deliver test results and notices electronically or in person, clarifying burdens of proof and limiting managerial liability.
While not cannabis-specific, these changes make compliance easier as THC use rises, particularly in a state without legal recreational marijuana.
Federal Developments: Rescheduling and the End of the Hemp Loophole
Federal reform gained momentum late in 2025. On December 18, President Trump signed an Executive Order directing the Attorney General to expedite rescheduling marijuana from Schedule I to Schedule III. The order prioritizes medical marijuana and CBD research, signaling a potential shift in workplace guidance and benefit plan design.
Meanwhile, Congress tightened the definition of hemp under H.R. 5371, capping total THC at 0.4 mg per container and banning lab-made intoxicants like delta-8. Employers now have stronger defenses for positive drug tests, particularly in safety-sensitive roles.
Emerging Trend: Impairment Over Past Use
Across states, there’s a clear trend: policies are moving away from penalizing past cannabis use toward focusing on real-time impairment, especially in non-safety-sensitive roles. Employers may still enforce workplace rules, but disqualifying candidates solely for lawful off-duty use is increasingly viewed as outdated.
Key Takeaways for Employers
2025 underscored that cannabis legislation is no longer just a legal issue—it’s a workforce challenge. Employers should:
Revisit drug testing policies to align with state law and emerging trends.
Train HR teams on handling medical cannabis requests and compliance updates.
Build flexibility into policies to respond to evolving state and federal rules.
As legalization spreads and federal guidance evolves, clear, defensible workplace policies are no longer optional—they’re essential.