Key Considerations for Minnesota Business Owners Regarding Marijuana Legalization

On August 1, 2023, the new Recreational Marijuana law will come into effect. This law allows adults 21 and older to be able to possess and consume marijuana. Employers will need to revise some policies because of this law and should seek legal counsel when updating these policies. We have provided a brief overview on how this will affect your business.

What Minnesota Business Owners Need to Know About Marijuana Legalization 

The final marijuana legalization bill, HF 100, allows for the following:

• Employers cannot discriminate or make negative employment decisions based on general marijuana usage. 
• Pre-employment testing for marijuana is no longer permitted for most applicants.
• Random cannabis testing is prohibited for current employees in most positions.
• Reasonable suspicion testing is permitted if the employer has reasonable suspicion that the employee is under the influence of marijuana while at work; has sustained or caused a personal injury; or has caused a work-related accident or was involved in a work-related accident.
• Employers can discipline or terminate employees for consumption of marijuana during work hours or on its premises. 
• The bill prohibits discipline based on use of recreational cannabis off work premises and outside of working hours.

Positions Exempted from Drug-Testing Changes

The changes to the drug testing statute do not apply to the following positions:

Safety-sensitive positions, including peace officers and firefighters.
Positions requiring face-to-face care, training, education, supervision, counseling, consultation, or medical assistance to children, vulnerable adults, or healthcare patients.
Positions requiring a commercial driver’s license, or federal or state law otherwise requires testing to be done to job applicants or employees for cannabis.
Positions funded by federal grants.

Froehling Anderson is a Minneapolis-based CPA firm and a member of AGN International, a global association of separate and independent accounting and advisory businesses. We provide business consulting, tax, audit and accounting services to a wide variety of industries, including construction, manufacturing & distribution, not-for-profit, professional real estate, and athletes & high net worth individuals.