Marijuana has been and is presently classified as a Schedule I drug under the federal Controlled Substances Act (CSA), defined as having high abuse potential with no accepted medical use (Schedule I also includes heroin, LSD and MDMA (commonly known as “ecstasy”)). First recommended by the Biden Administration in 2023, on December 18, 2025, President Trump signed an Executive Order directing the Department of Justice to “take all necessary steps . . . in the most expeditious manner” to complete the rulemaking process related to rescheduling marijuana to Schedule III of the Controlled Substances Act (CSA). Moving marijuana to Schedule III – defined as drugs with a “moderate to low potential for physical and psychological dependance,” including anabolic steroids and testosterone – would, among other things, acknowledge the widely accepted medical use of marijuana. This in turn could have substantial downstream effects on employers and employees.
Impacts on Employers
Rescheduling Has Yet to Occur. While the rulemaking process is underway, it’s crucial for employers to recognize that marijuana is still a Schedule I drug under the CSA until any rescheduling is complete. Currently, rescheduling has not occurred and may not occur for an extended period of time. Neither the Executive Order nor any other announcements from the Trump Administration have detailed just how swiftly the often-slow process could move.
This being the case, employees must continue to adhere to existing federal regulations mandating drug testing. For example, any employee performing safety‐sensitive functions subject to drug testing under the Department of Transportation’s drug testing regulations remain prohibited from using marijuana and remain subject to related testing. These restrictions apply to pilots, school bus drivers, truck drivers, train engineers, subway operators, aircraft maintenance personnel, armed transit security personnel, ship captains and pipeline emergency response personnel, among others.
Even after rescheduling, employers may prohibit employee impairment. Even if marijuana becomes a Schedule III drug, employers still likely will be able to require employees to adhere to policies that prohibit marijuana use and impairment in the workplace, including drug testing, subject to local and state laws.
Rescheduling May Lead to Increased ADA Claims. Although more than thirty-five states have authorized the use of marijuana for medicinal purposes, courts have rejected accommodation-related claims under the Americans with Disabilities Act (ADA) stemming from medical marijuana use, citing that marijuana currently remains illegal under federal law. But in some circumstances, the ADA creates a safe harbor for individuals using controlled substances pursuant to a valid prescription and appropriate use. So, once marijuana is rescheduled to Schedule III, establishing it has currently accepted medical uses in treatment in the United States, employees may attempt to assert ADA claims alleging adverse actions were taken against them based solely on the employee’s medicinal marijuana use. While it remains uncertain whether reclassifying marijuana will cause a marked uptick in these claims, employers still have recourse for disruptive behavior. For example, employers would likely continue to be permitted to take employment actions if the employee’s medical marijuana use poses a direct threat to safety, if an employee is impaired while working or has requested an unreasonable accommodation (for example, to use marijuana during working time).
Remain mindful of state and local laws. While rescheduling would impact federal law, employers still need to be mindful of state and local laws that regulate drug policies and testing, some of which provide protections to marijuana users. For example, under Arizona’s Medical Marijuana Act, it is unlawful for an employer to discriminate against an employee or applicant who holds a valid medical marijuana card based on their status as a cardholder (with some exceptions).