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Wednesday, October 7, 2026

Federal Discrimination Statutes And The Cannabis Industry: An Illegal Industry Still Subject To Federal Laws - Employee Rights/ Labour Relations - United States - Mondaq

On its face, it appears to be counterintuitive: United States federal courts recognizing and enforcing workplace rights for employees working in an illegal industry. After all, we would not expect a judge to lend a sympathetic ear to the employee of an arms trafficker or an interstate fraud ring. However, this is just the case when it comes to the marijuana industry. In fact, recent federal cases and administrative actions make it clear that, although participants in the marijuana industry may be engaging in conduct deemed illegal under federal law, cannabis companies must still comply with federal discrimination laws.

Federal laws, such as Title VII of the Civil Rights Act of 1964 (Title VII), the Age Discrimination in Employment Act of 1967, and the Americans with Disabilities Act prohibit discrimination, harassment, and retaliation in the workplace. However, because the cannabis industry is still in its infancy, it should come as no surprise that there is a dearth of case law addressing how these laws will intersect in an industry deemed illegal under federal law. One of the earliest cases to address this issue is Aichele v. Blue Elephant Holdings, LLC.1 In Aichele, the District Court of Oregon ruled that an employee who worked at a marijuana dispensary as a part-time budtender successfully stated a claim under federal law that, after she complained about sexual harassment and workplace safety, her employer's subsequent conduct and treatment of her in the workplace...



Read Full Story: https://www.mondaq.com/unitedstates/employee-rights-labour-relations/1223142/...