[co-author: Leah Shepherd]

On September 21, 2026, the U.S. District Court for the District of New Jersey upheld an arbitrator’s award for an employee who was discharged after a positive marijuana test. The decision provides guidance to employers on the application of the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA).

Quick Hits

• A New Jersey federal district court rejected a concrete company’s bid to overturn an arbitrator’s award in favor of an employee who was discharged after testing positive for marijuana.
• The court found that the odor of marijuana alone is not sufficient to establish reasonable suspicion of cannabis use, possession, or impairment as required for an adverse action under CREAMMA.
• Under CREAMMA, an employer may take an adverse employment action against an employee based on—but not solely due to—the presence of cannabinoid metabolites in the employee’s bodily fluids.

Under CREAMMA, marijuana is legal for recreational use. The law prohibits employers from taking adverse employment actions solely based on a positive marijuana test. Employers can require an employee to undergo a drug test when there is reasonable suspicion of an employee’s use of marijuana while on duty, when there are observable signs of marijuana intoxication, or following a work-related accident subject to investigation by the employer.

Background on the Case

In April 2025, as an employee for County Concrete Corp. drove his personal...

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