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The U.S. Department of Justice (DOJ) has reclassified certain marijuana and marijuana-containing products to Schedule III controlled substances, which recognizes a drug’s potential legitimate medical use, a significant change in federal drug policy that could have implications for employers and workplace drug policies.
Quick Hits
Acting Attorney General Todd Blanche issued a final order, dated April 22, 2026, directing that “drug products containing marijuana that have been approved by the Food and Drug Administration (FDA)” and “marijuana subject to a state medical marijuana license” be immediately placed in Schedule III of the Controlled Substances Act (CSA).
The final order does not legalize marijuana, or cannabis, for recreational purposes on the federal level, nor will it directly impact state legalization. However, beyond the employment implications, it will remove barriers for further medical research on the drug and will allow for the broader manufacture and sale of medical marijuana products.
Attorney General Blanche also provided notice that the Drug Enforcement Administration (DEA) will hold a hearing “with respect to the proposed rescheduling of marijuana into Schedule III of the Controlled Substances Act beginning June 29, 2026.” Per Attorney General Blanche, this hearing “will provide a timely and legally compliant pathway to evaluate broader changes to marijuana’s status under federal law.”
The move stems from President Donald Trump’s December 18, 2025, Executive Order (EO) 14370, which directed the U.S. Department of Justice (DOJ) to expedite the rescheduling of marijuana. That EO followed a Biden administration proposal to reschedule marijuana in 2024, which the DOJ considered but ultimately did not reclassify.
Specifically, the new DOJ final order applies to certain products containing marijuana as defined in the CSA, marijuana extracts, and other compounds derived from the marijuana plant that falls outside of hemp, including delta-9-tetrahydrocannabinol (THC), “to the extent at any of these are included in an FDA-approved drug product or are subject to a state-issued license to manufacture, distribute, and/or dispense marijuana or products containing marijuana for medical purposes.” The final order also directs an expedited registration process for certain entities holding state medical marijuana licenses, allowing those entities to manufacture, distribute, and dispense marijuana for medical purposes under federal law.
Significance of Reclassification
The reclassification is significant in that it shifts federal policy, which has considered marijuana to be a Schedule I controlled substance, defined as drugs with no accepted medical use and a high potential for abuse. That meant federal law did not recognize marijuana as having any legitimate medical purpose, notwithstanding that many states have enacted medical and recreational marijuana legalization laws over the past twenty years.
Schedule III drugs, on the other hand, are defined as substances with “moderate to low potential for physical and psychological dependence”—placing medical marijuana products alongside substances like ketamine, acetaminophen with codeine, anabolic steroids, and dronabinol, a synthetic version of THC used to treat nausea, vomiting, and loss of appetite.
Most immediately, the reclassification will allow more medical research on medical uses for marijuana and make it easier for more potential researchers to enter the space. That could, in turn, impact states in their consideration of whether to legalize medical marijuana or the recreational use of marijuana.
Key Implications for Employers
ADA Reasonable Accommodation Claims
With marijuana drug products rescheduled as Schedule III (acknowledging accepted medical uses), employers may see more employee claims under the Americans with Disabilities Act (ADA), alleging adverse actions were taken against them based on medicinal marijuana use or that employers failed to accommodate the use of medicinal marijuana. Some courts have previously rejected such claims because marijuana was federally illegal, but that reasoning may be challenged under the new framework. However, the order does not usurp or nullify existing state medical marijuana laws, many of which provide express protections for medical marijuana cardholders, or state disability discrimination and off-duty conduct laws, under which medical marijuana cardholders have frequently asserted claims. As such, employers must still consider state drug testing laws, marijuana laws, disability laws, and off-duty conduct laws—which remain a risk for employers as they have in the past.
Workplace Policies and Drug Testing
Even after rescheduling, employers likely retain the ability to:
However, the reclassification of marijuana drug products underscores broader shifting public opinion on marijuana use that could lead to broader legalization. That could lead to increased scrutiny of zero-tolerance policies, particularly regarding off-duty medical marijuana use that does not result in impairment while at work or on the job or otherwise affect job performance.
The Medical vs.“Non-Medical Use” Distinction
Importantly, the DOJ order distinguishes medical forms of marijuana from non-medical uses, presumably state-approved recreational marijuana, which remains on Schedule I. Specifically, marijuana and marijuana derivatives contained in FDA-approved drug products and marijuana covered by state medical licenses have moved to Schedule III. The order states that registrations under the order “do not authorize the manufacture, distribution, dispensing, or use of marijuana or products containing marijuana for non-medical purposes.” (Emphasis added). Additionally,
synthetic THC remains in Schedule I. This distinction seems confusing on its face since many non-medical, or recreational, marijuana substances contain the “same” THC as FDA-approved and state-licensed marijuana products, and state-approved recreational marijuana is legal to purchase in some states.
Department of Transportation Impact
The impact of the rescheduling on employees subject to U.S. Department of Transportation (DOT) regulations remains to be seen. On December 19, 2025, the DOT issued a policy and compliance notice stating that it would not change drug testing processes or regulations unless and until rescheduling occurs. The DOT’s outright prohibition of marijuana use relies on marijuana’s previous Schedule I classification, but the DOT is not required to change its marijuana policy solely based on the rescheduling. As such, it remains to be seen how the DOT will respond now that marijuana is Schedule III, though additional regulatory guidance is expected.
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Find Your Next Job !
The U.S. Department of Justice (DOJ) has reclassified certain marijuana and marijuana-containing products to Schedule III controlled substances, which recognizes a drug’s potential legitimate medical use, a significant change in federal drug policy that could have implications for employers and workplace drug policies.
Quick Hits
Acting Attorney General Todd Blanche issued a final order, dated April 22, 2026, directing that “drug products containing marijuana that have been approved by the Food and Drug Administration (FDA)” and “marijuana subject to a state medical marijuana license” be immediately placed in Schedule III of the Controlled Substances Act (CSA).
The final order does not legalize marijuana, or cannabis, for recreational purposes on the federal level, nor will it directly impact state legalization. However, beyond the employment implications, it will remove barriers for further medical research on the drug and will allow for the broader manufacture and sale of medical marijuana products.
Attorney General Blanche also provided notice that the Drug Enforcement Administration (DEA) will hold a hearing “with respect to the proposed rescheduling of marijuana into Schedule III of the Controlled Substances Act beginning June 29, 2026.” Per Attorney General Blanche, this hearing “will provide a timely and legally compliant pathway to evaluate broader changes to marijuana’s status under federal law.”
The move stems from President Donald Trump’s December 18, 2025, Executive Order (EO) 14370, which directed the U.S. Department of Justice (DOJ) to expedite the rescheduling of marijuana. That EO followed a Biden administration proposal to reschedule marijuana in 2024, which the DOJ considered but ultimately did not reclassify.
Specifically, the new DOJ final order applies to certain products containing marijuana as defined in the CSA, marijuana extracts, and other compounds derived from the marijuana plant that falls outside of hemp, including delta-9-tetrahydrocannabinol (THC), “to the extent at any of these are included in an FDA-approved drug product or are subject to a state-issued license to manufacture, distribute, and/or dispense marijuana or products containing marijuana for medical purposes.” The final order also directs an expedited registration process for certain entities holding state medical marijuana licenses, allowing those entities to manufacture, distribute, and dispense marijuana for medical purposes under federal law.
Significance of Reclassification
The reclassification is significant in that it shifts federal policy, which has considered marijuana to be a Schedule I controlled substance, defined as drugs with no accepted medical use and a high potential for abuse. That meant federal law did not recognize marijuana as having any legitimate medical purpose, notwithstanding that many states have enacted medical and recreational marijuana legalization laws over the past twenty years.
Schedule III drugs, on the other hand, are defined as substances with “moderate to low potential for physical and psychological dependence”—placing medical marijuana products alongside substances like ketamine, acetaminophen with codeine, anabolic steroids, and dronabinol, a synthetic version of THC used to treat nausea, vomiting, and loss of appetite.
Most immediately, the reclassification will allow more medical research on medical uses for marijuana and make it easier for more potential researchers to enter the space. That could, in turn, impact states in their consideration of whether to legalize medical marijuana or the recreational use of marijuana.
Key Implications for Employers
ADA Reasonable Accommodation Claims
With marijuana drug products rescheduled as Schedule III (acknowledging accepted medical uses), employers may see more employee claims under the Americans with Disabilities Act (ADA), alleging adverse actions were taken against them based on medicinal marijuana use or that employers failed to accommodate the use of medicinal marijuana. Some courts have previously rejected such claims because marijuana was federally illegal, but that reasoning may be challenged under the new framework. However, the order does not usurp or nullify existing state medical marijuana laws, many of which provide express protections for medical marijuana cardholders, or state disability discrimination and off-duty conduct laws, under which medical marijuana cardholders have frequently asserted claims. As such, employers must still consider state drug testing laws, marijuana laws, disability laws, and off-duty conduct laws—which remain a risk for employers as they have in the past.
Workplace Policies and Drug Testing
Even after rescheduling, employers likely retain the ability to:
However, the reclassification of marijuana drug products underscores broader shifting public opinion on marijuana use that could lead to broader legalization. That could lead to increased scrutiny of zero-tolerance policies, particularly regarding off-duty medical marijuana use that does not result in impairment while at work or on the job or otherwise affect job performance.
The Medical vs.“Non-Medical Use” Distinction
Importantly, the DOJ order distinguishes medical forms of marijuana from non-medical uses, presumably state-approved recreational marijuana, which remains on Schedule I. Specifically, marijuana and marijuana derivatives contained in FDA-approved drug products and marijuana covered by state medical licenses have moved to Schedule III. The order states that registrations under the order “do not authorize the manufacture, distribution, dispensing, or use of marijuana or products containing marijuana for non-medical purposes.” (Emphasis added). Additionally,
synthetic THC remains in Schedule I. This distinction seems confusing on its face since many non-medical, or recreational, marijuana substances contain the “same” THC as FDA-approved and state-licensed marijuana products, and state-approved recreational marijuana is legal to purchase in some states.
Department of Transportation Impact
The impact of the rescheduling on employees subject to U.S. Department of Transportation (DOT) regulations remains to be seen. On December 19, 2025, the DOT issued a policy and compliance notice stating that it would not change drug testing processes or regulations unless and until rescheduling occurs. The DOT’s outright prohibition of marijuana use relies on marijuana’s previous Schedule I classification, but the DOT is not required to change its marijuana policy solely based on the rescheduling. As such, it remains to be seen how the DOT will respond now that marijuana is Schedule III, though additional regulatory guidance is expected.
More Upcoming Events
Sign Up for any (or all) of our 25+ Newsletters
You are responsible for reading, understanding, and agreeing to the National Law Review’s (NLR’s) and the National Law Forum LLC’s Terms of Use and Privacy Policy before using the National Law Review website. The National Law Review is a free-to-use, no-log-in database of legal and business articles. The content and links on www.NatLawReview.com are intended for general information purposes only. Any legal analysis, legislative updates, or other content and links should not be construed as legal or professional advice or a substitute for such advice. No attorney-client or confidential relationship is formed by the transmission of information between you and the National Law Review website or any of the law firms, attorneys, or other professionals or organizations who include content on the National Law Review website. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor.
Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. The National Law Review is not a law firm nor is www.NatLawReview.com intended to be a referral service for attorneys and/or other professionals. The NLR does not wish, nor does it intend, to solicit the business of anyone or to refer anyone to an attorney or other professional. NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us.
Under certain state laws, the following statements may be required on this website and we have included them in order to be in full compliance with these rules. The choice of a lawyer or other professional is an important decision and should not be based solely upon advertisements. Attorney Advertising Notice: Prior results do not guarantee a similar outcome. Statement in compliance with Texas Rules of Professional Conduct. Unless otherwise noted, attorneys are not certified by the Texas Board of Legal Specialization, nor can NLR attest to the accuracy of any notation of Legal Specialization or other Professional Credentials.
The National Law Review – National Law Forum LLC 2070 Green Bay Rd., Suite 178, Highland Park, IL 60035 Telephone (708) 357-3317 or toll-free (877) 357-3317. If you would like to contact us via email please click here.
Copyright ©2026 National Law Forum, LLC