A New Jersey court recently ruled that employees have the right to sue for discrimination if they are denied employment due to testing positive for cannabis. This decision affects many job seekers across the state, particularly in light of the legalization of recreational cannabis use in New Jersey.

The case, Darlene Sanders v. The Levari Group, LLC, was decided by the New Jersey Superior Court Appellate Division on May 26, 2026. The court's ruling is significant as it clarifies the application of the Cannabis Regulatory, Enforcement Assistance, and Market Modernization Act (CREAMMA) regarding employment discrimination.

Background

Darlene Sanders, the plaintiff in this case, applied for a customer service representative position with The Levari Group, LLC, which operates under the name First Choice Freezer. After being offered the position, Sanders underwent a pre-employment drug test, which returned positive for cannabinoid metabolites. Although she had used cannabis recreationally in the past month, she was not under the influence at the time of her application.

Following the positive drug test, the company rescinded its job offer. Sanders filed a complaint in April 2023, alleging that her rights under CREAMMA were violated when the company refused to hire her based on her cannabis use. Her complaint included claims of negligence, invasion of privacy, and breach of contract, in addition to the primary claim under CREAMMA.

The trial court initially dismissed Sanders’ claims, stating that CREAMMA did not provide a private right of action for individuals like her. However, Sanders appealed the decision, arguing that the law was intended to protect individuals from discrimination based on cannabis use.

The Ruling

The New Jersey Superior Court Appellate Division ultimately ruled in favor of Sanders, reversing the trial court's dismissal of her claims. The court determined that CREAMMA does indeed provide a private right of action for individuals who believe their employment rights have been violated due to cannabis use. The ruling stated, "We conclude the answer is yes" regarding the existence of a private right of action under CREAMMA.

Judges Marczyk, Bishop-Thompson, and Puglisi presided over the case. The court emphasized the legislative intent behind CREAMMA, noting that the law aims to protect individuals from discrimination in employment based on their lawful use of cannabis. The ruling also pointed out that the statute's language reflects a clear intent to provide protections for individuals like Sanders.

Impact

This ruling has significant implications for workers in New Jersey. It establishes that employees can seek legal recourse if they are discriminated against for their legal cannabis use. This decision is particularly important as more states move toward legalization of cannabis, and it provides a framework for addressing workplace discrimination based on cannabis use.

Furthermore, the court's decision highlights the importance of protecting employees' rights in a changing legal landscape. As cannabis use becomes more accepted socially and legally, workers should feel secure in their rights to seek employment without fear of discrimination based on their lawful activities.

The ruling may also encourage other states to consider similar protections for employees regarding cannabis use. It sets a precedent for how employment laws can adapt to reflect changing societal norms and legal frameworks surrounding cannabis.

What's Next

Following this ruling, The Levari Group may consider appealing the decision to a higher court. Meanwhile, this case may prompt other cannabis-related employment disputes to arise, as workers become more aware of their rights under CREAMMA. Legal experts will be watching closely to see how this ruling influences future cases and whether additional protections for employees will be enacted in response to the evolving cannabis industry.