Effective April 22, 2026, the U.S. Department of Justice, acting through the Drug Enforcement Administration, issued a final order reclassifying certain marijuana-related substances from Schedule I to Schedule III under the Controlled Substances Act. The order covers two categories: FDA-approved drug products containing marijuana and marijuana, marijuana extracts, and naturally derived delta-9 THC that are subject to a qualifying state medical marijuana license. It does not, however, extend to recreational marijuana or synthetically derived THC — both of which remain Schedule I controlled substances. The full order can be found here. 

This reclassification carries meaningful implications for employers, but it does not fundamentally alter existing workplace drug policies. Marijuana is still a controlled substance under federal law. The final order does not create any employee right to use marijuana in the workplace or to report to work while impaired, and employers subject to federal drug-testing requirements — including those regulated by the Department of Transportation, the Nuclear Regulatory Commission, or the Drug-Free Workplace Act — may continue to test for it. That said, employers should anticipate employee confusion in the wake of this change and should communicate clearly and promptly that workplace use and impairment remain prohibited.

At the same time, rescheduling may heighten employee expectations that medical marijuana use will be treated more leniently. Many states already afford employment protections to medical marijuana cardholders through anti-discrimination, disability, or off-duty conduct laws, and this development is likely to further reinforce the perceived legitimacy of those protections. 

The reclassification may also carry broader accommodation implications. By moving medical marijuana to Schedule III and creating a federal registration pathway for certain state-licensed medical marijuana entities, the federal government has taken a significant step toward the regulatory framework many states have already adopted. The practical effect is straightforward: employees with valid state medical marijuana authorization may be more inclined to seek workplace accommodations under state disability and anti-discrimination laws, and employers should be prepared to engage in that process.

Key Takeaways

Employers should take the opportunity to review their drug and alcohol policies, handbook provisions, and testing protocols. At a minimum, policies should clearly distinguish between medical and recreational use, establish a consistent process for evaluating positive tests involving medical marijuana cardholders, and set forth procedures for responding to accommodation requests. 

Beyond updating written policies, employers should also invest in training managers and human resources personnel on these changes, communicate expectations proactively to the workforce, and consult with employment counsel to ensure compliance with both federal and applicable state law.