“At Will” Employment Status Results in CBD Suit Termination

In a recent unpublished opinion, the U.S. Court of Appeals for the Eighth Circuit issued a ruling upholding a summary judgment in favor of the employer who faced the lawsuit after terminating an employee for a THC positive drug test.

As a brief background, the employee tested positive for THC in a urine-screening test. The employee alleged that he used CBD oil for his back pain which caused the positive test. He also tried to claim that his THC level was below the threshold listed in the employee manual.

The Court of Appeals pointed to Arkansas’ employment-at-will doctrine which allows employers to “discharge its employees at any time, ‘for good cause, no cause, or even a morally wrong cause.’” The Court also determined none of the narrow exceptions to this doctrine apply to the facts at hand. According to the Court, the employee handbook was also clear that either party could terminate the employment relationship at any time, with or without a reason for doing so.

Employers should note that this decision specifically analyzed Arkansas law. There are several states with various lawful use statutes which all interact with existing medical and recreational marijuana laws differently, so a state-by-state based analysis is essential for employers. We also recommend employers review their employee handbooks for appropriate language related to the employment relationship as well as their workplace drug policies.