{"id":4641,"date":"2023-02-28T21:06:55","date_gmt":"2023-02-28T21:06:55","guid":{"rendered":"https:\/\/www.fwhtlaw.com\/blog\/?p=4641"},"modified":"2023-03-01T16:12:13","modified_gmt":"2023-03-01T16:12:13","slug":"high-stakes-considerations-for-contractors-in-light-of-the-minnesota-legislatures-anticipated-legalization-of-cannabis","status":"publish","type":"post","link":"https:\/\/www.fwhtlaw.com\/blog\/2023\/02\/28\/high-stakes-considerations-for-contractors-in-light-of-the-minnesota-legislatures-anticipated-legalization-of-cannabis\/","title":{"rendered":"High Stakes \u2013 Considerations for Contractors in Light of the Minnesota Legislature\u2019s Anticipated Legalization of Cannabis"},"content":{"rendered":"<p><strong><a href=\"#_ftn1\" name=\"_ftnref1\"><\/a><\/strong><\/p>\n<p>Julia is a shareholder of the firm\u2019s Construction Law Department.\u00a0 She can be reached at 612.359.7622 or <a href=\"mailto:jdouglass@fwhtlaw.com\">jdouglass@fwhtlaw.com<\/a>.<\/p>\n<p>Minnesota Democrats have pledged that they will pass legislation allowing recreational marijuana this session with their new majorities in both chambers of the state legislature.\u00a0 This commitment marks the latest development in Minnesota\u2019s ongoing progression toward marijuana use legalization, and the remarkably quick change in the law poses special risks and challenges for contractors who operate in an environment where operational, safety, and productivity concerns are paramount.<\/p>\n<p><u>Current State of the Law in Minnesota<\/u><\/p>\n<p>Prior to last summer, Minnesota employers who have policies in place for pre-employment drug testing or drug testing of current employees were aware of protections for those employees who were enrolled in the Department of Health Patient Registry Program for medical marijuana.\u00a0 Under the laws related to that program, an employer cannot discriminate against a person enrolled on the registry in hiring, termination or any other employment decision upon a positive drug test for cannabis unless that individual was impaired or intoxicated by cannabis at his place of employment during his work hours.<\/p>\n<p>Last summer, the Minnesota Legislature threw employers a new curveball when it legalized certain forms of cannabis for recreational use.\u00a0 The law, which took effect in July 2022, allows anyone ages 21 and older to buy edibles and beverages containing up to 50 milligrams of hemp-derived tetrahydrocannabinol or THC per package.\u00a0 Unlike other states which have previously legalized cannabis, the Minnesota Legislature frankly didn\u2019t allow employers the time\u2014much less provide any guidance\u2014as to how or whether their pre-existing drug testing policies comported with the new law.<\/p>\n<p>Another complication for employers under the Lawful Consumable Products Act passed last summer is that the statute protects consumption of a lawful consumable product during an employee\u2019s non-work time.\u00a0 The statute defines a \u201clawful consumable product\u201d as a product whose use or enjoyment is lawful, and specifically includes food, alcoholic or non-alcoholic beverages, and tobacco. It is silent as to whether THC edibles are protected in the definition of \u201clawful consumable product\u201d which further complicates an employment situation when an employee receives a positive drug test for THC.<\/p>\n<p><u>Anticipated Changes and Challenges<\/u><\/p>\n<p>It is fully expected that the Minnesota Legislature will broaden the legalization of marijuana this session beyond the initial legalization of THC edibles and beverages which was passed last summer.\u00a0 In the construction industry in particular, the passage of any broader legislation raises a host of issues including the following:<\/p>\n<ul>\n<li>\u2022\u00a0 \u00a0Marijuana can remain in a user\u2019s body for up to four weeks after the marijuana is consumed, so an employee who tests positive for a drug test may or may not be under the influence of a drug, especially if it was consumed several weeks before the drug test.\u00a0 Currently, there are no drug tests on the market which can pinpoint the time in which marijuana or the type or strain of TCH or marijuana that was consumed.<\/li>\n<\/ul>\n<ul>\n<li>\u2022\u00a0 \u00a0For those contractors who have pre-employment drug testing policies, they will have to exercise greater discretion over whether to hire a prospective employee who tests positive for marijuana.\u00a0 Depending on the position being filled, these employers will have to balance concerns with safety and risk with what will be deemed a legal activity.<\/li>\n<\/ul>\n<ul>\n<li>\u2022\u00a0 \u00a0There are no guidelines as to what constitutes a \u201cmarijuana impairment standard.\u201d\u00a0 For contractors who have implemented drug tests based on a \u201creasonable suspicion\u201d standard, the lack of any established guidance on marijuana impairment will make these policies even more difficult to implement consistently and fairly.<\/li>\n<\/ul>\n<ul>\n<li>\u2022\u00a0 \u00a0Finally, for construction companies which operate inside and outside of Minnesota, those companies may potentially have to develop different drug testing policies specific to the jurisdictions in which they have employees.<\/li>\n<\/ul>\n<p><u>Precedent from Other Jurisdictions<\/u><\/p>\n<p>Given the quick changes to Minnesota law in such a short period of time, Minnesota courts have yet to weigh in on whether marijuana or THC will be considered a \u201clawful consumable product\u201d or whether employers will be able to actually enforce zero tolerance policies against employees who test positive for marijuana.\u00a0 Other courts, however, have had the opportunity to address these issues in recent years, and the decisions at least provide some indication of how Minnesota courts might address these issues in the future.<\/p>\n<p>For example, in the Colorado Supreme Court has previously held that employers could enforce their zero tolerance policies against employees who are allowed to use medical cannabis under state law, even if the employee established that he used the marijuana during non-work hours.<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a>\u00a0 The Colorado Supreme Court stated that to be protected under the lawful consumable product statute in that state, the use must be \u201clawful\u201d under both state and federal law.\u00a0 Therefore, since marijuana is still designated as illegal under federal law, a Colorado employee testing positive for medical marijuana can be disciplined, including termination, for failing a drug test.<\/p>\n<p>The Nevada Supreme Court incorporated that same analysis in August of 2022 when it affirmed that an employee couldn\u2019t sue an employer after being fired for testing positive for marijuana following a post-work injury drug test.<a href=\"#_ftn2\" name=\"_ftnref2\">[2]<\/a> The Court emphasized that because marijuana remains illegal under federal law, the employee\u2019s off-duty use of marijuana could not have been \u201clawful use.\u201d\u00a0 The Court repeatedly highlighted that had the state legislature wished to protect all off-duty use of marijuana it could have done so when drafting the statute.<a href=\"#_ftnref1\" name=\"_ftn1\"><\/a><\/p>\n<p><u>Key Takeaways<\/u><\/p>\n<p>We don\u2019t know what protections or guidance will be afforded to Minnesota employers in the next few months, nor do we know how Minnesota courts will respond to challenges and adverse employment decisions arising from an employee\u2019s use of marijuana.\u00a0 Given the serious safety concerns in the construction industry in particular, however, there are certain steps contractors can take now to better protect their workplaces and their employees:<\/p>\n<ul>\n<li>\u2022\u00a0 \u00a0Take the time to review\u2014and if needed, update\u2014your employment policies on drug testing and drug impairment.\u00a0 Importantly, your policies should still make clear that (1) employees cannot come to work impaired by alcohol or other drugs, including marijuana; (2) employees are prohibited from consuming substances like alcohol or drugs at the jobsite; and (3) employees cannot sell or purchase alcohol, drugs, or drug paraphernalia at the jobsite and\/or during work hours.<\/li>\n<\/ul>\n<ul>\n<li>\u2022\u00a0 \u00a0Reconsider the value of pre-employment drug testing for THC or marijuana.\u00a0 With broader legalization, inevitably more employees will be testing positive from lawful consumption of those products.\u00a0 Currently drug test results are binary\u2014either an employee is \u201cnegative\u201d or \u201cpositive.\u201d\u00a0 Until better drug tests are developed to determine the level of THC or marijuana in an applicant\u2019s blood, it\u2019s difficult to unequivocally determine whether an applicant\u2019s legal use of THC is or should be a source of concern.\u00a0 Moreover, making employment decisions based solely on the results of the current drug tests could still open employers up to liability if an applicant is using THC or marijuana products for a specific medical reason.\u00a0 For these reasons, until a drug test can measure levels of THC or marijuana consumption, the pre-employment drug test has limited utility.<\/li>\n<\/ul>\n<ul>\n<li>\u2022\u00a0 \u00a0Develop more specific policies for \u201creasonable suspicion\u201d drug testing.\u00a0 Many employers and especially contractors require drug testing when they have a strong reason to believe that an employee may be acting under the influence of drugs or alcohol while on the job.\u00a0 Better training for project managers and superintendents should be offered to help them better determine whether an employee might be under the influence of marijuana.\u00a0 Companies should implement a specific \u201creasonable suspicion\u201d protocol to determine that the reasons for the tests are uniformly documented and supported.<\/li>\n<\/ul>\n<ul>\n<li>\u2022\u00a0 \u00a0Continue to implement random, safety-sensitive drug tests for those employees whose work is vital to maintaining a safe jobsite.\u00a0 Under current Minnesota law, after a positive test result, employees \u201cmust be given written notice of the right to explain the positive test and the employer may request that the employee or job applicant indicate any over-the-counter or prescription medication that the individual is currently taking or has recently taken and any other information relevant to the reliability of, or explanation for, a positive test result.\u201d<a href=\"#_ftn3\" name=\"_ftnref3\">[3]<\/a> The employee may then \u201csubmit information to the employer, in addition to any information already already submitted\u201d to explain that result. \u00a0Accordingly, if an employee tests \u201cpositive\u201d for THC or marijuana, employers may then learn more about the extent of the employee\u2019s THC\/marijuana use and make an informed employment decision based upon the explanation provided by the employee.\u00a0 Again, however, the employer should further develop policies to ensure that adverse employment decisions being made about an employee\u2019s THC or marijuana use are made on an established set of factors to ensure consistency and fairness.<\/li>\n<\/ul>\n<p><u>Conclusion<\/u><\/p>\n<p>The quick changes in Minnesota law regarding the legalization of marijuana and hemp-derived products like THC are forcing many employers to reconsider their employment policies, especially on drug testing.\u00a0 Given the potential serious impacts that employee impairment could have on construction projects, contractors in particular should work with their counsel to review and update their employment policies to conform to the latest changes of the law as this legislative session continues.<\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> Coats v. Dish Network, LLC, 350 P.3d 849 (Colo. 2015)<\/p>\n<p><a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> Ceballos v. NP Palace, LLC, 514 P.3d 1074 (Nev. 2022)<\/p>\n<p><a href=\"#_ftnref3\" name=\"_ftn3\">[3]<\/a> Minn. Stat. \u00a7 181.953, subd. 6.\u00a0 For a more complete review of Minnesota\u2019s current drug testing laws, refer to Minn. Stat. \u00a7 181.950, <em>et seq<\/em>.<\/p>\n<hr \/>\n<p style=\"text-align: center;\"><strong>Announcements<\/strong><\/p>\n<p><strong><a href=\"https:\/\/www.fwhtlaw.com\/attorneys\/matthew-t-collins\">Matt Collins<\/a><\/strong> will discuss<strong> Best Construction Law Practices for Subcontractors<\/strong> hosted by the <strong>Minnesota Concrete &amp; Masonry Contractors Association<\/strong> on March 2 at 7:30 am\u00a0(7:00 registration). Venued in Roseville, Minnesota, Matt will be discussing fundamental construction law principals that every subcontractor and supplier should know for running a successful business.\u00a0 If you would like more information to attend, please click <a href=\"https:\/\/mcmca.com\/event\/construction-law-for-subcontractors\/\"><strong>here.<\/strong><\/a><\/p>\n<p><strong><a href=\"https:\/\/www.fwhtlaw.com\/attorneys\/mark-r-becker\">Mark Becker<\/a> <\/strong>was inducted as a Fellow into the<strong> American College of Construction Lawyers<\/strong>, an organization of nationally recognized construction lawyers.<strong> <a href=\"https:\/\/www.fwhtlaw.com\/attorneys\/dean-b-thomson\">Dean Thomson<\/a> <\/strong>was elected as the College\u2019s President Elect. For more information click <strong><a href=\"https:\/\/www.fwhtlaw.com\/blog\/2023\/02\/28\/congratulations-to-mark-becker-for-inducted-as-a-fellow-into-the-accl\/\">here.<\/a><\/strong><\/p>\n<p><strong>Fabyanske, Westra, Hart &amp; Thomson, P.A.\u00a0<\/strong>is pleased to announce the recognition of nine attorneys,\u00a0<strong><u><a href=\"https:\/\/fwhtlaw.com\/attorneys\/mark-r-becker\/\">Mark Becker,<\/a><\/u><\/strong> <strong><u><a href=\"https:\/\/fwhtlaw.com\/attorneys\/matthew-t-collins\/\">Matt Collins,<\/a><\/u><\/strong> <strong><u><a href=\"https:\/\/fwhtlaw.com\/attorneys\/rory-o-duggan\/\">Rory Duggan,<\/a><\/u><\/strong> <strong><u><a href=\"https:\/\/fwhtlaw.com\/attorneys\/gary-c-eidson\/\">Gary Eidson,<\/a><\/u><\/strong><strong> <a href=\"https:\/\/fwhtlaw.com\/attorneys\/marvin-t-fabyanske\/\">Marv Fabyanske,<\/a> <\/strong><strong><u><a href=\"https:\/\/fwhtlaw.com\/attorneys\/kyle-e-hart-construction-lawyer-commercial-litigation\/\">Kyle Hart,<\/a><\/u><\/strong> <strong><u><a href=\"https:\/\/fwhtlaw.com\/attorneys\/jesse-r-orman\/\">Jesse Orman,<\/a><\/u><\/strong><strong> <a href=\"https:\/\/fwhtlaw.com\/attorneys\/dean-b-thomson\/\">Dean Thomson\u00a0<\/a><\/strong>and<strong>\u00a0Tom Vollbrecht\u00a0 <\/strong>by\u00a0<strong><em>U.S. News Best Lawyers<sup>\u00a9<\/sup><\/em>,<\/strong>\u00a0one of the oldest and most respected peer-review publications in the legal profession. <strong><a href=\"https:\/\/fwhtlaw.com\/attorneys\/dean-b-thomson\/\">Dean Thomson\u00a0<\/a><\/strong>was also selected by Best Lawyers as\u00a0<strong>2023 Attorney of the Year<\/strong>\u00a0in Construction Law. For more information click <a href=\"https:\/\/www.fwhtlaw.com\/blog\/2022\/08\/18\/best-lawyers-in-america-recognizes-ten-fabyanske-attorneys-mark-becker-matt-collins-rory-duggan-gary-eidson-marv-fabyanske-kyle-hart-jesse-orman-dean-thomson-and-tom-vollbrecht\/\"><strong>here.<\/strong><\/a><\/p>\n<hr \/>\n<p><a href=\"#_ednref5\" name=\"_edn5\"><\/a><\/p>\n<p><a href=\"#_ednref15\" name=\"_edn15\"><\/a><\/p>\n<p><em>This discussion is generalized in nature and should not be considered a substitute for professional advice. \u00a9 2023 FWH&amp;T<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Julia is a shareholder of the firm\u2019s Construction Law Department.\u00a0 She can be reached at 612.359.7622 or jdouglass@fwhtlaw.com. Minnesota Democrats have pledged that they will pass legislation allowing recreational marijuana this session with\u2026<\/p>\n","protected":false},"author":8,"featured_media":4634,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7,29],"tags":[],"class_list":["post-4641","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-briefing-papers","category-julia-j-douglass"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.12 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>High Stakes \u2013 Considerations for Contractors in Light of the Minnesota Legislature\u2019s Anticipated Legalization of Cannabis - Fabyanske, Westra, Hart &amp; Thomson<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.fwhtlaw.com\/blog\/2023\/02\/28\/high-stakes-considerations-for-contractors-in-light-of-the-minnesota-legislatures-anticipated-legalization-of-cannabis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"High Stakes \u2013 Considerations for Contractors in Light of the Minnesota Legislature\u2019s Anticipated Legalization of Cannabis - Fabyanske, Westra, Hart &amp; Thomson\" \/>\n<meta property=\"og:description\" content=\"Julia is a shareholder of the firm\u2019s Construction Law Department.\u00a0 She can be reached at 612.359.7622 or jdouglass@fwhtlaw.com. 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