ENACTED LEGISLATION
CALIFORNIA: Cannabis users' protections signed into law
Summary: Effective January 1, 2024, AB 2188 will make it "unlawful for an employer to discriminate against a person in hiring, termination, or any term or condition of employment, or otherwise penalize a person, if the discrimination is based upon the person's use of cannabis off the job and away from the workplace, except for pre-employment drug screening, as specified, or upon any employer required drug screening test that has found the person to have non-psychoactive cannabis metabolites." Certain applicants and employees are exempt from the bill's provisions, such as those in positions requiring a federal background investigation or clearance.
Impact(s): California employers
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PROPOSED LEGISLATION
CALIFORNIA: Legislation passed that would automatically seal criminal records
Summary: If signed by Governor Newson, SB 731 would expand automatic sealing of criminal records for offenders who complete all terms of incarceration, probation, mandatory supervision, post release community supervision, and parole, and where a period of four years has elapsed since the date of such completion. Persons with records of arrest shall also be eligible for relief. This law would not apply to those convicted of certain "serious felonies" or "violent felonies" as well as any felony offense requiring sex offender registration. In addition, although employers and landlords will not be able to view these expunged records, the records will still be available to law enforcement, public and private schools, courts, and the state justice department.
Impact(s): California employers
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CALIFORNIA: California Legislature passes Pay Transparency Act
Summary: Pending signature, California's Pay Transparency Act (SB1162) will go into effect January 1, 2023 and is applicable to all employers who employ 15 or more individuals. The bill will require that both internally and externally posted positions must be accompanied by a salary or wage range (exclusive of bonuses or other equity-based compensation.) Third parties that publish job postings on behalf of employers are also expected to comply. Furthermore, because SB 1162 is not expressly limited to employers with operations or staff in California, the law could impact employers without a physical office or current employees in the state. As such, organizations that publish nationwide postings for remote positions could be impacted.

Currently, California law requires an employer to disclose salary/wage information upon an applicant's reasonable request and after an initial interview has been conducted. If passed, SB1162 would expand this requirement to include current employees requesting pay scale data for the position the individual currently holds and any inquiring candidate, regardless of whether an interview has been conducted. Honoring requests about pay data from both current employees and applicants applies to all employers, even those maintaining less than 15 employees.

California law also currently requires that organizations employing 100 individuals or more report pay data pertaining to 10 specific job categories to the California Department of Fair Employment and Housing (DFEH). These reporting requirements would be expanded under SB 1162 to include the median and mean hourly rate, delineated by race, ethnicity and sex for each job category and would also be applicable to individuals hired via labor contractors. If signed, these terms of the bill would go into effect starting May 1, 2023.

Impact(s): California employers
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OTHER
NEW JERSEY: Cannabis Regulatory Commission issues guidance on suspicion of cannabis impairment
Summary: On September 9, 2022, the New Jersey Cannabis Regulatory Commission issued guidance to employers regarding the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act on how to respond to employees who are suspected of marijuana impairment. This Act created the role of a certified individual, Worker Impairment Recognition Expert (WIRE), who could assess an employee and determine if the employee is under the influence in the workplace.

The guidance states that under N.J.S.A. 24:6I-52a(1), employers are not permitted to take adverse action solely due to the presence of cannabinoid metabolites in the employee's bodily fluid; however, employers still have the right to maintain a drug free workplace and may require an employee to undergo a drug test upon reasonable suspicion of an employee's usage of cannabis while engaged in the performance of work responsibilities. Employers are also permitted to conduct drug testing upon finding any observable signs of impairment related to usage of cannabis, or as part of a random drug test program or work-related accident investigation.

Employers should keep in mind that, as noted by the NJ Cannabis Regulatory Commission, a testing method that indicates the presence of cannabinoid metabolites alone is insufficient to support an adverse employment action. However, "such a test combined with evidence-based documentation of physical signs or other evidence of impairment during an employee's prescribed work" may be sufficient to support an adverse action employment action.

Additionally, since the Commission has not yet set forth any regulations or guidance on how to become a certified WIRE, the Commission recommends that in the interim, or until guidelines are set forth on how to become a certified WIRE, an employer designate a staff member to assist in making determinations regarding suspected drug use. To determine impairment, this individual may use "cognitive impairment tests - a scientifically valid, objective, consistently repeatable, standardized automated test designed to measure an employee's impairment - or an ocular scan, as possible physical signs or evidence to establish reasonable suspicion of cannabis use or impairment at work." The guidance also suggests that a second person be involved in the testing procedures.

Impact(s): New Jersey employers
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COURT OPINIONS
U.S.D.C FOR THE DISTRICT OF NEW JERSEY: Large retailer sued in New Jersey federal court for alleged violation of the New Jersey Cannabis Regulatory Enforcement Assistance and Marketplace Modernization Act
Summary: Plaintiff files this class action complaint in the Gloucester County Superior Court alleging that his job offer was rescinded due to a positive drug test for cannabis thereby violating the New Jersey Cannabis Regulatory Enforcement Assistance and Marketplace Modernization Act which permits the use of recreational marijuana. The Plaintiff alleges that he applied for a position with the retailer and was offered the job, contingent on the results of a drug test. According to the complaint, the Plaintiff states his job offer was rescinded after he tested positive for marijuana. The complaint further states that the decision was based off of the retailer's drug and alcohol policy, which stipulates that "any applicant or associate who tests positive for illegal drug use may be ineligible for employment," and alleges that "Defendants consider marijuana to be an illegal drug pursuant to their policies." The class of Plaintiffs includes all persons who, since "on or after February 22, 2021: (1) were denied employment by Defendants in the state of New Jersey because he or she testing positive for marijuana in pre-employment drug screen; and/or (2) were subject to any other adverse employment action because he or she tested positive for marijuana."
Impact(s): New Jersey employers
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