Quick Hits
- The DOJ ordered the reclassification of certain marijuana and marijuana-containing products from Schedule I to Schedule III controlled substances, potentially reshaping medical research and employer policies around its use.
- Reclassification could lead to more medical research on marijuana and other non-employment-related impacts.
- Reclassification could also have implications for employers, including the handling of employees who are medical marijuana cardholders, analysis of workplace accommodation requests, and maintaining drug testing and other drug-free workplace policies.
- Employers with U.S. Department of Transportation (DOT)-regulated employees may want to remain mindful of the potential impact of rescheduling, though the specific impact is unknown at this time.
Acting Attorney General Todd Blanche issued a final order, dated April 22, 2026, directing that “drug products containing marijuana that have been approved by the Food and Drug Administration (FDA)” and “marijuana subject to a state medical marijuana license” be immediately placed in Schedule III of the Controlled Substances Act (CSA).
The final order does not legalize marijuana, or cannabis, for recreational purposes on the federal level, nor will it directly impact state legalization. However, beyond the employment implications, it will remove barriers for further medical research on the drug and will allow for the broader manufacture and sale of medical marijuana products.
Attorney General Blanche also provided notice that the Drug Enforcement Administration (DEA) will hold a hearing “with respect to the proposed rescheduling of marijuana into Schedule III of the Controlled Substances Act beginning June 29, 2026.” Per Attorney General Blanche, this hearing “will provide a timely and legally compliant pathway to evaluate broader changes to marijuana’s status under federal law.”
The move stems from President Donald Trump’s December 18, 2025, Executive Order (EO) 14370, which directed the U.S. Department of Justice (DOJ) to expedite the rescheduling of marijuana. That EO followed a Biden administration proposal to reschedule marijuana in 2024, which the DOJ considered but ultimately did not reclassify.
Specifically, the new DOJ final order applies to certain products containing marijuana as defined in the CSA, marijuana extracts, and other compounds derived from the marijuana plant that falls outside of hemp, including delta-9-tetrahydrocannabinol (THC), “to the extent at any of these are included in an FDA-approved drug product or are subject to a state-issued license to manufacture, distribute, and/or dispense marijuana or products containing marijuana for medical purposes.” The final order also directs an expedited registration process for certain entities holding state medical marijuana licenses, allowing those entities to manufacture, distribute, and dispense marijuana for medical purposes under federal law.
Significance of Reclassification
The reclassification is significant in that it shifts federal policy, which has considered marijuana to be a Schedule I controlled substance, defined as drugs with no accepted medical use and a high potential for abuse. That meant federal law did not recognize marijuana as having any legitimate medical purpose, notwithstanding that many states have enacted medical and recreational marijuana legalization laws over the past twenty years.
Schedule III drugs, on the other hand, are defined as substances with “moderate to low potential for physical and psychological dependence”—placing medical marijuana products alongside substances like ketamine, acetaminophen with codeine, anabolic steroids, and dronabinol, a synthetic version of THC used to treat nausea, vomiting, and loss of appetite.
Most immediately, the reclassification will allow more medical research on medical uses for marijuana and make it easier for more potential researchers to enter the space. That could, in turn, impact states in their consideration of whether to legalize medical marijuana or the recreational use of marijuana.
Key Implications for Employers
ADA Reasonable Accommodation Claims
With marijuana drug products rescheduled as Schedule III (acknowledging accepted medical uses), employers may see more employee claims under the Americans with Disabilities Act (ADA), alleging adverse actions were taken against them based on medicinal marijuana use or that employers failed to accommodate the use of medicinal marijuana. Some courts have previously rejected such claims because marijuana was federally illegal, but that reasoning may be challenged under the new framework. However, the order does not usurp or nullify existing state medical marijuana laws, many of which provide express protections for medical marijuana cardholders, or state disability discrimination and off-duty conduct laws, under which medical marijuana cardholders have frequently asserted claims. As such, employers must still consider state drug testing laws, marijuana laws, disability laws, and off-duty conduct laws—which remain a risk for employers as they have in the past.
Workplace Policies and Drug Testing
Even after rescheduling, employers likely retain the ability to:
- Prohibit employee use, possession, or impairment in the workplace
- Maintain drug-free workplace policies consistent with federal and state law
- Conduct drug testing, subject to state and local laws
However, the reclassification of marijuana drug products underscores broader shifting public opinion on marijuana use that could lead to broader legalization. That could lead to increased scrutiny of zero-tolerance policies, particularly regarding off-duty medical marijuana use that does not result in impairment while at work or on the job or otherwise affect job performance.
The Medical vs.“Non-Medical Use” Distinction
Importantly, the DOJ order distinguishes medical forms of marijuana from non-medical uses, presumably state-approved recreational marijuana, which remains on Schedule I. Specifically, marijuana and marijuana derivatives contained in FDA-approved drug products and marijuana covered by state medical licenses have moved to Schedule III. The order states that registrations under the order “do not authorize the manufacture, distribution, dispensing, or use of marijuana or products containing marijuana for non-medical purposes.” (Emphasis added). Additionally,
synthetic THC remains in Schedule I. This distinction seems confusing on its face since many non-medical, or recreational, marijuana substances contain the “same” THC as FDA-approved and state-licensed marijuana products, and state-approved recreational marijuana is legal to purchase in some states.
Department of Transportation Impact
The impact of the rescheduling on employees subject to U.S. Department of Transportation (DOT) regulations remains to be seen. On December 19, 2025, the DOT issued a policy and compliance notice stating that it would not change drug testing processes or regulations unless and until rescheduling occurs. The DOT’s outright prohibition of marijuana use relies on marijuana’s previous Schedule I classification, but the DOT is not required to change its marijuana policy solely based on the rescheduling. As such, it remains to be seen how the DOT will respond now that marijuana is Schedule III, though additional regulatory guidance is expected.
Next Steps
Employers may want to review and audit drug policies to ensure clarity on federal preemption, safety-sensitive positions, and potential consequences. Employers may also want to be prepared to reassess their reasonable accommodation approaches under the ADA and to consider approaches similar to those employers have used to address state disability laws in the past. Additionally, employers may want to stay updated on anticipated regulatory developments or guidance may be released by the DOT, DEA, and the Department of Health and Human Services (HHS).
Ogletree Deakins’ Drug Testing Practice Group will continue to monitor developments and will provide updates on the Employment Law, Drug Testing, Healthcare, Leaves of Absence, and Trucking and Logistics blogs as additional information becomes available.
This article and more information on how the Trump administration’s actions impact employers can be found on Ogletree Deakins’ Administration Resource Hub.
Information on state and federal marijuana laws, as well as drug testing requirements, is available on the Ogletree Deakins Client Portal. As new laws are enacted, the Client Portal will provide updates on the Medical Marijuana Law Summary, the Recreational Marijuana Law Summary, and the Drug Testing Marijuana Law Summary. Template policies and full law summaries are available for Premium and Advanced subscribers. Snapshots and updates are available for all registered client users. For more information on the Client Portal or a Client Portal subscription, please reach out to clientportal@ogletree.com.
Follow and Subscribe
LinkedIn | Instagram | Webinars | Podcasts
“Ogletree Deakins has experienced professionals in all areas of labour and employment law who provide efficient, client-focused service. We represent employers of all industries and sizes, from small businesses to Fortune 50 companies.”
Please visit the firm link to site
