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Sunday, October 4, 2026

Nevada Supreme Court Sides With Employer in Marijuana Dispute - Manatt, Phelps & Phillips, LLP

Demonstrating the challenges of differing state and federal laws with regard to marijuana, the Nevada Supreme Court dismissed a complaint filed by an employee terminated for a positive marijuana test.

A table games dealer at Palace Station, Danny Ceballos worked for more than a year without any performance or disciplinary issues. Toward the end of his shift on June 25, 2020, however, he slipped and fell in the break room.

Palace Station security responded, first assisting him and then requiring him to submit a drug test. The test came back positive for marijuana, and Palace Station terminated Ceballos.

Ceballos sued, relying on NRS 613.333, which created a private right of action in the state in favor of an employee who is discharged from employment for engaging in “the lawful use in this state of any product outside the premises of the employer during the employee’s nonworking hours.”

Because recreational use of marijuana is legal in Nevada and Ceballos used it on his own time at home more than 24 hours before his shift, he claimed his termination violated the statute.

The trial court granted Palace Station’s motion to dismiss, and the state’s highest court affirmed.

Nevada decriminalized adult recreational marijuana use by voter initiative effective January 1, 2017, the court acknowledged.

“But marijuana possession remains illegal and federally prosecutable under the federal Controlled Substances Act (CSA),” the court wrote. “So, we must decide what the phrase ‘lawful...



Read Full Story: https://www.manatt.com/insights/newsletters/employment-law/nevada-supreme-cou...