Iowa Amends Medical Marijuana Law Providing Clear Employer Protections

Iowa recently amended its medical marijuana law by passage of House File 2589 which was signed by Governor Kim Reynolds on June 29th. The law took effect almost immediately on July 1st.

Of particular note for employers is a new section, 124E.21 “Employer regulation of marijuana use”. According to this new provision, employers are not required to permit or accommodate the use, consumption, possession, transfer, display, transportation, distribution, sale or growing of marijuana in the workplace. Further, employers are permitted to implement policies restricting employee marijuana use and may include in employee contracts a provision prohibiting marijuana use. Employers are also able to establish and enforce a zero-tolerance drug policy or drug-free workplace policy including drug testing.

Additionally, another new section provides protections for employers related to discrimination or other liability claims based on refusing to hire, discharging, disciplining, discriminating, retaliating or otherwise taking any adverse employment action against an individual during the hiring phase or with any aspect of employment.

After several rulings (particularly on the East Coast) that seem to make marijuana regulation by employers nearly impossible, the Iowa provisions may offer a welcome relief for employers in the state. Employers are encouraged to review their drug testing and workplace policies with qualified legal counsel.