Kentucky Medical Marijuana Law: Employer Rights and Policies

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The Kentucky medical marijuana law marks a significant shift in the state’s approach to cannabis regulation. On January 1, 2025, Kentucky joined the growing number of states legalizing medical marijuana with the implementation of the Medical Marijuana Act. While this landmark legislation creates new opportunities for medical treatment, it also raises important questions for employers about workplace policies and rights. Here’s what Kentucky employers need to know about their rights and obligations under the new law.

Key Protections for Employers

The Kentucky legislature has provided robust protections for employers under KRS 218B.040. The law explicitly preserves employers’ rights to maintain drug-free workplaces and enforce safety policies, regardless of an employee’s medical marijuana cardholder status. Here are the critical provisions employers should understand:

Workplace Policies and Safety

Under the current legislation, employers retain significant control over their workplace safety measures. Companies can prohibit the use, possession, or display of medical marijuana in the workplace, consistent with OSHA’s guidance on workplace drug testing policies (OSHA Memorandum, October 11, 2018). This authority extends to implementing and enforcing drug testing policies, drug-free workplace programs, and zero-tolerance drug policies. Additionally, employers maintain the right to restrict medical marijuana cardholders from operating equipment, machinery, or power tools when safety concerns exist. These restrictions can be formally incorporated into employment contracts and personnel policies.

Employee Impairment and Testing

The law provides a clear framework for addressing impairment concerns:

  • Employers can conduct impairment assessments of employees who are cardholders
  • Good faith determinations of impairment must include:
    1. Behavioral assessments
    2. Testing for cannabis presence using established methods
  • If an employer determines impairment through both behavioral assessment and testing, the burden shifts to the employee to prove non-impairment

Legal Protection for Employers

The Kentucky Medical Marijuana Act addresses employment-related legal claims under KRS 218B.040. The Act does not create or permit any new cause of action against employers for wrongful discharge or discrimination related to medical marijuana policies. This means that while the law creates a framework for medical marijuana use, it does not establish new grounds for employees to sue their employers over medical marijuana-related employment decisions.

Two additional protections are explicitly provided in the statute. First, employers cannot be penalized or denied any benefit under state law for employing cardholders. Second, regarding unemployment benefits, the law is specific: an employee who is discharged for consuming medicinal cannabis in the workplace, working while under the influence of medicinal cannabis, or testing positive for a controlled substance is ineligible for benefits under KRS Chapter 341, provided these actions violate an employment contract or established personnel policy.

Implementing Best Practices

To maintain a compliant and safe workplace under the new law, consider these recommendations:

  1. Review and update your drug policies to specifically address medical marijuana
  2. Establish clear procedures for impairment assessment and testing
  3. Train supervisors on recognizing impairment and proper documentation
  4. Communicate updated policies clearly to all employees
  5. Document all safety-sensitive positions and associated restrictions

What This Means for Your Business

Kentucky’s medical marijuana law strongly favors employer discretion in maintaining workplace safety and drug policies. While the law provides new rights to medical marijuana patients, it explicitly preserves employers’ ability to maintain drug-free workplaces and enforce safety protocols.

For guidance on implementing compliant workplace policies or handling specific situations related to Kentucky Medical Marijuana Law in your workplace, contact our employment law team for tailored legal advice.