Lindabury, McCormick, Estabrook & Cooper, P.C. Firm News & Events
On May 26, 2026, the New Jersey Appellate Division held that the state’s Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (“CREAMMA”) provides New Jersey employees with a private right of action to enforce its anti-discrimination provisions. As a result, New Jersey employees may now seek redress from the courts arising from adverse employment decisions based on their testing positive for cannabis products.
Background
In Sanders v. Levari Group, LLC, a New Jersey employer refused to hire a job applicant after a pre-employment drug test indicated the applicant’s use of cannabis items within the past month. There, the applicant accepted a conditional offer of employment and underwent an initial drug test. After testing positive for cannabis, the employer requested that the applicant submit to a repeat test at her own expense. When the applicant refused, the employer rescinded its offer of employment. Arguing that she did not use cannabis during the interview or drug testing process, the applicant filed a complaint in the New Jersey Superior Court. The trial court granted the employer’s motion to dismiss, finding no private right of action existed under CREAMMA and that the Cannabis Regulatory Commission was the proper enforcement body in the matter.
On appeal, the New Jersey Appellate Division reversed the trial court’s decision to dismiss the complaint, ruling that: (1) CREAMMA specifically prohibits employment-related discrimination based on an individual’s positive test for cannabis; (2) the legislature did not intend to preclude a private right of action under CREAMMA; and (3) the purpose of CREAMMA would be best served by providing a private right of action against an employer or potential employer that discriminates against employees or candidates who test positive for cannabis. In conclusion, the Court emphasized that without a private right of action, the anti-discrimination provisions in CREAMMA would be meaningless and unenforceable.
Why This Matters
As New Jersey law continues to develop and evolve regarding legal marijuana use, it is critical that employers stay up to date on the changing impacts to their businesses. This ruling clarifies that employees or applicants who are subject to an adverse employment action (such as a termination or non-hire) because of a positive showing of cannabis use on a drug test have the legal right to file a private lawsuit against their employer. We recommend that employers review their drug-testing practices and policies regarding positive test results for cannabis usage to ensure they remain up to date and compliant with this evolving area of the law. The attorneys in the Labor and Employment Group at Lindabury are available to assist you in these efforts.