The DOJ’s 2026 decision to move certain medical marijuana products to Schedule III has created a “dual framework” under federal law. While the change recognizes accepted medical uses for some cannabis products, recreational marijuana remains federally illegal. Employers can still enforce drug-free workplace policies and testing programs, but may face increased accommodation requests, legal challenges under state “lawful product” laws, and greater scrutiny of actions involving off-duty medical marijuana use. Employers should review policies and monitor ongoing regulatory developments.

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