Cannabis and Employment Law: The Year Ahead in 2026

As we move into 2026, legal frameworks surrounding cannabis continue to evolve across the jurisdictions in ways that can directly or indirectly impact employers. The most significant development is the continually discussed potential federal rescheduling of cannabis under the Controlled Substances Act (CSA), which could occur this year or in the near future. While many states have already implemented medical and/or adult-use cannabis laws, the federal classification shift may change the compliance landscape. Here’s what HR leaders and employers should watch for.

At the federal level, cannabis is currently a Schedule I substance under the CSA, a classification reserved for drugs with no accepted medical use and a high potential for abuse (e.g., heroin, LSD, and ecstasy). Though President Trump signed an executive order in December 2025 directing its rescheduling, the formal rescheduling process is still not completed. Rescheduling — here moving cannabis to Schedule III — would formally recognize a medical use, potentially reduce certain criminal penalties, and open doors for more research into therapeutic applications. What it would not do is legalize cannabis in a way that would otherwise impact employer drug-free workplace policies. Employers can still prohibit cannabis use on the job, operating under the influence, and maintain drug-free workplace programs, especially in safety-sensitive industries. Relatedly, Department of Transportation (DOT) rules prohibiting cannabis use for certain employees (e.g., drivers, pilots) would likely remain in effect, regardless of rescheduling. Rescheduling might, however, trigger increased requests for accommodations from employees who use medical cannabis. But cannabis use, even for medical purposes, may still fall outside mandatory accommodation requirements under federal law due to ongoing conflicts with workplace safety obligations. 

At the state level, the trend for increased employee protections continues. More states are incorporating statutory protections preventing discrimination against lawful off-duty cannabis use. States including California, New York, Connecticut, and others prohibit adverse employment actions based solely on a positive THC test (unless impairment is demonstrated during work hours). Other states and jurisdictions, like New York and Nevada, outright prohibit testing for cannabis as a condition of employment with limited exceptions. Employers operating in multiple jurisdictions must align their policies to the most restrictive state rules to avoid compliance gaps. And when it comes to determining impairment, states continue to refine how employers may conclude an employee is impaired. Laws in states such as Nevada and Minnesota emphasize observable signs of impairment, shifting the burden from purely chemical testing to a combination of behavioral and analytic measures. States like Illinois even explicitly include in its statute a list of potential observable signs employers may use in support of finding impairment. 

Ultimately, federal rescheduling of cannabis will not eliminate employer obligations or workplace safety concerns, but it could reshape employee expectations and accommodation requests. Employers should view 2026 as a year to solidify flexible yet compliant policies, train managers on evolving impairment standards and potentially how to detect impairment, and harmonize multi-jurisdictional practices. By staying proactive, HR teams can navigate the shifting landscape while preserving productivity, safety, and compliance.