For the First Time: Federal Policy Recognizes Cannabis has Legitimate Medical Use

On April 23, 2026, the U.S. Department of Justice (DOJ) issued an order reclassifying certain medical cannabis products under federal law. While narrow in scope, this move signals a meaningful shift in federal policy—recognizing that some forms of cannabis have legitimate medical use and partially aligning federal treatment with state-regulated medical cannabis programs.

The DOJ order reclassifies certain cannabis products from Schedule I to Schedule III under the Controlled Substances Act. Specifically, the change applies to:

• FDA-approved cannabis or cannabis-derived products
• Medical cannabis products regulated under state licensing frameworks

Historically, cannabis has been classified as a Schedule I controlled substance, meaning it was considered to have no currently accepted medical use and a high potential for abuse. By contrast, Schedule III substances are recognized to have legitimate medical uses, pose a lower risk of physical or psychological dependence, and may be prescribed and used in regulated medical contexts.

This reclassification is limited. Recreational cannabis remains Schedule I, and it is not federally legalized.

What This Means for Employers

While the policy signal is significant, the immediate legal impact of this change is limited.

Approximately 40 states and Washington, D.C., have legalized medical cannabis. Despite the DOJ’s action, state law continues to control most employer obligations regarding medical cannabis in the workplace. For example, a growing number of states (8 so far) impose employment-related protections, including:

• Limits on adverse action for off-duty use
• Accommodation requirements in certain circumstances
• Restrictions on drug testing practices

The DOJ’s order does not preempt or override these state laws.

Washington as an Example

Washington law already limits employer reliance on cannabis testing more than federal law—and the DOJ’s action does not change those requirements.

In Washington State, employer obligations are governed primarily by SB 5123 (effective January 1, 2024), which imposes significant restrictions on cannabis testing and hiring practices:

• Pre-employment testing is prohibited, except for designated safety-sensitive positions subject to federal requirements (such as DOT-regulated roles, law enforcement, firefighters, and certain aerospace positions)
• Employers cannot reject applicants based on:
  • Off-duty cannabis use
  • Positive tests for non-psychoactive THC metabolites

Washington law is based on the principle that traditional drug tests often detect past use, not current impairment. For example, THC metabolite tests do not indicate impairment, which limits the usefulness of urine or hair testing for hiring decisions.

ADA and Accommodation Considerations

The Americans with Disabilities Act (ADA) does not require accommodation of illegal drug use. However, the DOJ’s reclassification complicates the analysis by strengthening the argument that cannabis has legitimate medical value and may not be “illegal” in certain regulated contexts, particularly under state medical cannabis laws.

Employers should approach medical cannabis requests carefully and consistently, treating them as potential disability accommodation issues, not automatic policy exceptions. Each request should be evaluated on a case-by-case basis, with a focus on functional limitations, job duties, and workplace safety.

Practical Takeaways for Employers

Even in Washington and other protective states, employers can still act where:

• An employee is impaired at work
• The role is safety sensitive
• The employer is a federal contractor or otherwise federally regulated (e.g., subject to DOT requirements)
• Drug testing is required by federal law

The DOJ’s reclassification of certain medical cannabis products to Schedule III is not a wholesale legalization, but it is an important shift in federal posture.

As a result, employers should continue moving toward workplace policies that:

• Focus on impairment rather than use
• Prioritize workplace safety, particularly in safety-sensitive roles
• Apply consistent, case-by-case ADA analysis
• Align clearly with both federal and state law

Drug testing policies and content have been updated in the mozzo Resource Library to reflect this shift.

Members, Explore This Topic Further in the mozzo Resource Library:

Drug Testing - Washington State

Drug Alcohol Impairment Assessment Form 

Drug and Alcohol Policy Template