Joshua Bauchner and Natalie Diaz of Mandelbaum Barrett PC’s Cannabis, Hemp and Psychedelics Practice Group provided this analysis for Law360. You can read their full article “Parsing 3rd Circ. Ruling On Cannabis, Employee Private Suits,” here.
A recent decision by the U.S. Court of Appeals for the Third Circuit in Zanetich v. Walmart has major implications for job seekers and employees in New Jersey. The ruling confirms that individuals cannot sue employers under the state’s cannabis law if they believe they were treated unfairly due to legal cannabis use.
What Happened in the Case?
Erick Zanetich had a job offer from Walmart, but it was rescinded after he tested positive for cannabis. He sued the company, arguing that New Jersey’s cannabis law (CREAMMA) protected him from being denied a job because of legal cannabis use.
However, the court disagreed. It ruled that only the New Jersey Cannabis Regulatory Commission (CRC) has the authority to enforce cannabis-related employment protections—not individuals filing lawsuits.
What This Means for Workers and Employers
For employees and job applicants, this means that if they believe an employer has discriminated against them for cannabis use, they must file a complaint with the CRC rather than pursue legal action in court.
For employers, the ruling makes it clear that while they must follow CREAMMA’s guidelines, they won’t face direct lawsuits from employees over cannabis-related hiring and firing decisions. However, they should still ensure their workplace policies comply with the law to avoid regulatory action.
What’s Next?
The court suggested that the New Jersey Legislature could update the law to allow individuals to sue, but for now, enforcement remains in the hands of the CRC. Employers and employees alike should stay informed about potential changes to CREAMMA in the future.