U.S. Relaxes Medical Marijuana Restrictions – Now What? 

The U.S. Justice Department has relaxed legal restrictions on the use of medical marijuana by moving it from Schedule I to Schedule III, a significant and long-awaited transition. Until now, medical marijuana has been in the same category as drugs like heroin, LSD, ecstasy, and peyote.  

For now, rescheduling of medical marijuana does not change the Schedule I status of cannabis for recreational purposes, but it may be next. A majority of states have legalized marijuana for medical and/or recreational purposes. Drug rescheduling does not legalize marijuana; it changes how the federal government will enforce laws regulating its use.  

The change in status applies to Food and Drug Administration-approved medications and medical marijuana products regulated by a state license. Under federal statues, it is illegal to use Schedule I drugs, which are defined as having “no currently accepted medical use and a high potential for abuse.” Schedule III substances are defined as drugs with a low to moderate potential for physical and psychological dependence, such as allowable doses of codeine, ketamine, anabolic steroids, and testosterone. 

What Employers Need to Know Now 

The National Conference of State Legislatures reports that 40 states, three territories, and Washington, D.C., allow legal medical use of cannabis products; 24 states, two territories, and Washington, D.C., have legalized adult use of limited amounts of cannabis for recreational purposes. Consequently, employers still need to carefully navigate the marijuana use landscape and how to comply with federal and state laws that intersect in the jurisdictions where they have operations. 

With the rescheduling of medical marijuana: 

• Federal drug testing rules remain the same. SAMHSA’s Division of Workplace Programs and the U.S. Department of Transportation’s Office of Drug and Alcohol Policy Compliance have not issued any changes to regulated substance testing.  
• Companies can continue to enforce drug-free workplace policies that prohibit the use of substances with the potential to cause physical or mental impairment on the job. Blanket zero-tolerance policies may need to be adjusted to accommodate prescribed use of medical marijuana. 
• Medical assessments to evaluate an employee’s fitness for work while taking prescribed medical marijuana may still be used to provide valuable occupational health and safety insights. 
• As a Schedule III substance, medical marijuana no longer falls within the Americans with Disabilities Act exclusion for illegal drug use. Employees who use prescribed medical marijuana to manage disabling conditions may request reasonable accommodations, according to attorneys with Jones Walker, a law firm representing business clients. 

What Happens Next? 

U.S. officials said medical marijuana rescheduling is intended to facilitate medical research on cannabis-related medical benefits and access to approved therapies while supporting state-regulated medical marijuana programs. Proponents say the change will ease business-related restrictions, providing greater flexibility for financial transactions (e.g., banking, investments) and certain tax breaks for producers and distributors.  

Next steps include: 

• Procedural updates to expedite the rulemaking process required to fully remove medical marijuana from Schedule I and place it into Schedule III under the Controlled Substances Act.  
• Federal hearings scheduled to begin on June 29, 2026, which will include consideration of potential reclassification of recreational products.  

According to the Justice Department, the hearings will “provide a timely and legally compliant pathway to evaluate broader changes to marijuana’s status under federal law. Together, these actions provide immediate and long-term clarity to researchers, patients, and providers while still maintaining strict federal controls against illicit drug trafficking.” 

How WorkCare Can Help You Prepare for Marijuana Rescheduling 

Our expert occupational health and safety professionals are monitoring developments. Our clinicians are qualified to provide insights to help resolve issues related to legal exposure risk and medical monitoring. We also have a team dedicated to the management of drug-free workplace programs and all aspects of drug testing, including physician review of results.    

You can rely on WorkCare to help you stay informed – and complaint – as the federal drug schedule landscape shifts. Contact us for a consultation today.