2025 Marijuana Laws And The Workplace: What Employers Must Know
In 2025, evolving cannabis laws—driven largely by state-level changes—created new compliance challenges for employers. Here’s a look back at the key marijuana-related developments that shaped the employment landscape in 2025.
As we close out 2025, the workplace impact of cannabis legalization continues to grow more complex. While federal marijuana reform remains stalled, state-level legislation has driven some of the most significant compliance challenges for employers, particularly in drug testing, accommodation obligations, and employee discipline. This year saw a flurry of activity, from newly legalized markets to statutory changes that tightened, or in some cases, blurred the rules of engagement for employers.
Here’s a look back at the key cannabis-related developments that shaped the employment landscape in 2025.
Minnesota: Raising the Bar on Employer Justification
Minnesota became one of the most closely watched states this year, following the enactment of Senate File 2370. Effective May 24, 2025, the law requires employers to provide a registered medical cannabis patient with 14 days’ written notice before taking adverse action based on a positive drug test result. That notice must cite the specific federal statute or regulation at risk, not just a general reference to “federal law”.
The law builds on Minnesota’s earlier legalization framework, which already barred most pre-employment testing for cannabis and classified marijuana as a “lawful consumable product.” SF 2370 adds another layer of complexity by requiring employers in federally regulated industries articulate, with precision, the federal rule or contract at stake when acting on a positive result. The days of blanket drug-free workplace policies in Minnesota are fading fast.
Texas: Expanded Medical Access, but No Workplace Protections
Texas lawmakers passed House Bill 46, which significantly expanded the state’s Compassionate-Use Program. Patients with conditions like PTSD, chronic pain, and Crohn’s disease now qualify. The law also raised the THC limit to 10 milligrams per dose and authorized inhalation via medical devices.
For employers, however, the message remains unchanged: you can still drug test, you can still disqualify based on a positive THC result, and you are under no obligation to accommodate lawful medical use. Even as access expands, employment protections are conspicuously absent. As a result, more applicants may test positive for low-THC cannabis, but their rights in the workplace haven’t changed.
Massachusetts: Pre-Employment Testing Under Fire
Massachusetts advanced House Bill 2179 this year, a proposal that would prohibit most pre-employment marijuana testing. The bill passed committee and remains viable heading into 2026.
If enacted, employers could still conduct post-offer tests, but couldn’t revoke the offer based on a failed marijuana screen unless a safety-sensitive exception applies. That paradoxical structure could render much of the testing moot. For now, employers in Massachusetts should start evaluating whether cannabis testing still serves a legitimate business need, especially in non-safety-sensitive roles. Even without a signed law, the policy shift is clear: past use isn’t the same as present impairment, and employment decisions should reflect that distinction.
Pennsylvania: Legalization Efforts Continue, but Worker Protections Lag
Efforts to legalize adult-use marijuana in Pennsylvania intensified in 2025 but once again fell victim to political gridlock. On May 7, the Pennsylvania House passed House Bill 1200, which would have legalized cannabis sales through a state-run model overseen by the Liquor Control Board. The bill allowed personal cultivation, provided for expungement of certain offenses, and included social equity provisions. But it stalled in the Senate just six days later, tabled by the Law and Justice Committee amid opposition to the state-store model.
The latest attempt, House Bill 1735, was referred to the Health Committee on July 16. Like its predecessor, it would legalize adult-use cannabis and establish a regulatory framework. But notably, HB 1735 preserves the current employment rules: employers may continue to test for cannabis, discipline employees who test positive, and enforce zero-tolerance policies.
Local ordinances in Philadelphia and Pittsburgh continue to provide broader protections for medical marijuana users, including bans on pre-employment marijuana testing in many roles. Across the Commonwealth, legalization continues to advance while workplace protections remain stuck in neutral.
New Hampshire: Legalization Without Labor Safeguards
New Hampshire advanced House Bill 186 this year, a state-run cannabis legalization bill that would have authorized adult-use sales, personal possession, and a 15% cannabis excise tax. The House passed the bill in April, but it stalled in the Senate and failed to meet floor deadlines before the legislative session ended.
While states like Minnesota have paired legalization with workplace protections, HB 186 was largely silent on employment rights. It included no protections for off-duty cannabis use and imposed no limits on employer testing or discipline. Zero-tolerance policies would have remained enforceable. In a policy landscape where most cannabis bills now address employment impacts in some form, New Hampshire’s omission stands out and raises questions about whether future legislation will address the workplace at all.
Iowa: Practical Compliance Fixes for Testing Notices
While Iowa didn’t touch cannabis legality directly, it passed meaningful changes to its drug testing statute that affect marijuana policy implementation. Employers may now deliver drug test results and required notices electronically or in person, replacing the previous “certified mail only” standard. The law also clarifies burdens of proof and limits liability for individual managers.
Though not a cannabis-specific law, these updates help employers navigate increasingly complex testing scenarios as THC use rises, especially in a state without legal recreational marijuana.
Federal Update: Marijuana Rescheduling and the End of the Hemp Loophole
Marijuana reform picked up speed at the federal level in late 2025. On December 18, President Trump signed an Executive Order directing the Attorney General to expedite the existing rulemaking process to move marijuana from Schedule I to Schedule III under the Controlled Substances Act. The order also prioritizes medical marijuana and CBD research, with federal agencies tasked with closing the gap between cannabis use and medical guidance. While the rulemaking process is still underway, the Executive Order signals clear momentum for rescheduling in 2026, and a stronger research infrastructure that could shape future workplace guidance and benefit plan design.
Meanwhile, Congress took a more immediate step by rewriting the definition of hemp. Section 781 of H.R. 5371, enacted in November 2025, closes what many called the “hemp loophole” by capping total THC content at 0.4 milligrams per container and banning lab-made intoxicants like delta‑8. For employers, this tightens the compliance landscape. Workers who blamed positive drug tests on THCA flower or delta-8 gummies will have fewer defenses moving forward. While testing protocols haven’t changed, this shift could help employers defend against claims, especially in safety-sensitive roles and DOT-regulated positions.
Trend to Watch: The Shift Toward Impairment-Based Policies
Across these jurisdictions, a national trend is emerging. States are increasingly rejecting drug testing policies that focus on past cannabis use, especially for roles that aren’t safety-sensitive or federally regulated. Instead, lawmakers are nudging employers toward policies that address real-time impairment rather than the presence of THC metabolites.
That doesn’t mean employers must tolerate marijuana use on the job. It does mean they should reconsider policies that disqualify candidates based solely on off-duty, lawful use, especially in competitive labor markets.
Parting Thoughts
While Congress didn’t deliver sweeping marijuana reform in 2025, the year closed with a decisive federal shift. President Trump’s Executive Order directing the DEA to expedite marijuana rescheduling marks a turning point, one that could reshape workplace drug testing and benefits policy in the years ahead.
At the state level, momentum continued. Minnesota enacted new safeguards for medical cannabis patients. Massachusetts advanced a bill to curb pre-employment marijuana testing. Texas expanded its medical program, while Pennsylvania once again came close to legalizing adult use. New Hampshire left workplace protections off the table, and Iowa delivered compliance fixes for testing notices. Meanwhile, Congress tightened the hemp definition, banning lab-made intoxicants like delta-8 with implications for employer testing programs.
Even when legislation stalls or remains pending, it still reshapes expectations, and points toward emerging compliance risks. Employers can’t afford to wait and see. Now’s the time to revisit drug testing policies, train HR teams, and build flexibility into compliance frameworks. As cannabis laws evolve, a clear, defensible policy is more important than ever.
Release Date: December 29, 2025
Alonzo Martinez
Alonzo Martinez is Associate General Counsel at HireRight, where he supports the company’s compliance, legal research, and thought leadership initiatives in the background screening industry. As a senior contributor at Forbes, Alonzo writes on employment legislation, criminal history reform, pay equity, AI discrimination laws, and the impact of legalized cannabis on employers. Recognized as an industry influencer, he shares insights through his weekly video updates, media appearances, podcasts, and HireRight's compliance webinar series. Alonzo's commitment to advancing industry knowledge ensures HireRight remains at the forefront of creating actionable compliance content.