Michigan Labor & Employment Law Blog

On April 22, 2026, the Department of Justice (DOJ) and Drug Enforcement Administration (DEA) issued an order immediately reclassifying two categories of marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA) which were: (1) FDA‑approved marijuana‑based drugs and (2) marijuana subject to a state-issued license to manufacture, distribute, or dispense for medical purposes.

All other marijuana, including recreational marijuana, unlicensed bulk marijuana, hemp, marijuana extract and delta-9-THC materials remain Schedule I controlled substances under the CSA. Even so, the legal consequences of moving medical marijuana out of Schedule I are substantial.

A subsequent order issued by Acting Attorney General Todd Blanche also announced that an expedited administrative hearing is scheduled for June 29, 2026 to consider the broader rescheduling of marijuana from Schedule I to Schedule III.

Reclassification Impact on Employers

The Americans with Disabilities Act excludes protections for individuals who are currently engaged in the illegal use of drugs. Because marijuana was classified as a Schedule I controlled substance, employers could deny accommodation requests tied to its use without further analysis on the basis that it was a Schedule I substance, meaning it was considered to have no accepted medical usage and high potential for abuse. An employer evaluating whether medical marijuana use is entitled to an accommodation can no longer categorically deny the use based solely on federal illegality.

With medical marijuana and FDA-approved marijuana now classified as a Schedule III substance, employers should view an employee’s use like other prescription medications. Employers must now evaluate medical marijuana use through the ADA’s familiar frameworks, including engaging in the interactive process and determining whether a reasonable accommodation is available for an employee with a qualifying disability.

However, nothing in the reclassification order prohibits employers from maintaining zero-tolerance drug policies or policies prohibiting impaired performance or unsafe workplace conditions. Employers remain free to prohibit employees from working under the influence of drugs and to enforce drug‑free workplace policies grounded in safety and job performance.

Employers should now focus on individualized factors such as:

• Whether the employee’s medical marijuana use is lawful and medically authorized,
• Whether the underlying condition is protected under the ADA,
• The essential functions of the employee’s position, and
• Whether accommodation would pose a direct threat or impose an undue hardship.

For safety‑sensitive roles, particularly those governed by federal regulation, the answer to whether the marijuana use is permitted may often remain “no.” But the decision should be reached through a case-by-case analysis rather than assumed illegality. We will likely see this area tested in the Courts on how the reclassification will impact employer policies and discretion related to medical marijuana and adverse employment on positive tests.

Impact on Federal Contractors (As of Now)

The April order does not explicitly change marijuana or drug testing policies for federal contractors. At this point, it’s not clear whether moving certain marijuana products from Schedule I to Schedule III eliminates the Department of Transportation’s (or other federal agency’s) ability to drug test their employees for marijuana use. Previously, the DOT announced it would not be changing any processes or regulations until the rescheduling was completed, but it is unclear whether that stance has changed now. 

Currently, the DOT and other federal agencies have not yet changed their drug testing policies, but employers subject to DOT’s drug and alcohol testing regulations should monitor closely any changes.

What Employers Should Do Now

Employers should review their drug testing and drug-free workplace policies and procedures, including supervisor training and accommodation policies, to ensure compliance with the medical marijuana rescheduling, understanding that state and local laws continue to regulate marijuana drug testing.

Employers must carefully review accommodation requests involving medical marijuana on a case-by-case basis.

Employers should also closely monitor the June 29, 2026 hearing on broader marijuana rescheduling and closely monitor changes to DOT-regulations on drug testing, as well as watch for anticipated litigation challenging the April 22, 2026 order. If you have further concerns prior to this hearing, please contact a member of our labor & employment law team.