As we close out 2025, the workplace impact of cannabis legalization continues to grow more complex. While federal marijuana reform remains stalled, state-level legislation has driven some of the most significant compliance challenges for employers, particularly in drug testing, accommodation obligations, and employee discipline. This year saw a flurry of activity, from newly legalized markets to statutory changes that tightened, or in some cases, blurred the rules of engagement for employers.
Here’s a look back at the key cannabis-related developments that shaped the employment landscape in 2025.
Minnesota: Raising the Bar on Employer Justification
Minnesota became one of the most closely watched states this year, following the enactment of Senate File 2370. Effective May 24, 2025, the law requires employers to provide a registered medical cannabis patient with 14 days’ written notice before taking adverse action based on a positive drug test result. That notice must cite the specific federal statute or regulation at risk, not just a general reference to “federal law”.
The law builds on Minnesota’s earlier legalization framework, which already barred most pre-employment testing for cannabis and classified marijuana as a “lawful consumable product.” SF 2370 adds another layer of complexity by requiring employers in federally regulated industries articulate, with precision, the federal rule or contract at stake when acting on a positive result. The days of blanket drug-free...
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