Cannabis And Employment Law: The Year Ahead In 2026 – Employee Rights/ Labour Relations

As we move into 2026, legal frameworks surrounding cannabis
continue to evolve across the jurisdictions in ways that can
directly or indirectly impact employers. The most significant
development is thecontinually discussed
potential federal rescheduling of cannabis under the Controlled
Substances Act (CSA), which could occur this year or in the
near future. Whilemany states have
already implemented medical and/or adult-use cannabis laws, the
federal classification shift may change the compliance landscape.
Here’s what HR leaders and employers should watch for.

At the federal level, cannabis is currently a Schedule I
substance under the CSA, a classification reserved for drugs with
no accepted medical use and a high potential for abuse (e.g.,
heroin, LSD, and ecstasy). ThoughPresident Trump signed
an executive order in December 2025 directing its rescheduling,
the formal rescheduling process is still not completed.
Rescheduling — here moving cannabis to Schedule III —
would formally recognize a medical use, potentially reduce certain
criminal penalties, and open doors for more research into
therapeutic applications. What it would not do is legalize cannabis
in a way that would otherwise impact employer drug-free workplace
policies. Employers can still prohibit cannabis use on the job,
operating under the influence, and maintain drug-free workplace
programs, especially in safety-sensitive industries. Relatedly,
Department of Transportation (DOT) rules prohibiting cannabis use
for certain employees (e.g., drivers, pilots) would likely remain
in effect, regardless of rescheduling. Rescheduling might, however,
trigger increased requests for accommodations from employees who
use medical cannabis. But cannabis use, even for medical purposes,
may still fall outside mandatory accommodation requirements under
federal law due to ongoing conflicts with workplace safety
obligations.

At the state level, the trend for increased employee protections
continues. More states are incorporating statutory protections
preventing discrimination against lawful off-duty cannabis use.
States including California, New York, Connecticut, and others
prohibit adverse employment actions based solely on a positive THC
test (unless impairment is demonstrated during work hours). Other
states and jurisdictions, like New York and Nevada, outright
prohibit testing for cannabis as a condition of employment with
limited exceptions. Employers operating in multiple jurisdictions
must align their policies to the most restrictive state rules to
avoid compliance gaps. And when it comes to determining impairment,
states continue to refine how employers may conclude an employee is
impaired. Laws in states such as Nevada and Minnesota emphasize
observable signs of impairment, shifting the burden from purely
chemical testing to a combination of behavioral and analytic
measures. States like Illinois even explicitly include in its
statute a list of potential observable signs employers may use in
support of finding impairment.

Ultimately, federal rescheduling of cannabis will not eliminate
employer obligations or workplace safety concerns, but it could
reshape employee expectations and accommodation requests. Employers
should view 2026 as a year to solidify flexible yet compliant
policies, train managers on evolving impairment standards and
potentially how to detect impairment, and harmonize
multi-jurisdictional practices. By staying proactive, HR teams can
navigate the shifting landscape while preserving productivity,
safety, and compliance.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.