The New Jersey Appellate Division recently upheld a worker’s compensation court decision ordering Pepsi Bottling Group to reimburse a one-time employee for his work injury-related medical cannabis costs...
The New Jersey Appellate Division recently upheld a worker’s compensation court decision ordering Pepsi Bottling Group to reimburse a one-time employee for his work injury-related medical cannabis costs. The appeals court relied on the Supreme Court of New Jersey’s recent decision in Hager v. M&K Construction.
NJ Supreme Court Ruled in Hager Employer Must Cover Cannabis Costs
As discussed in a prior article, the New Jersey Supreme Court unanimously held in as reasonable or necessary treatment under the New Jersey Workers’ Compensation Act (WCA). The court further concluded that the provision of the New Jersey’s Jake Honig Compassionate Use Medical Cannabis Act (Compassionate Use Act) stating that reimbursement for medical marijuana costs is not required of “a government medical assistance program or private health insurer” did not exempt employers like M&K.
“If the Legislature sought to depart from that general definition and treat workers’ compensation and private health coverage in the same manner under the Compassionate Use Act, it could have expressly included workers’ compensation insurance in its exhaustive list or broadened the exception more generally, as other states have explicitly done,” Justice Lee Solomon wrote.
The New Jersey Supreme Court also interpreted Congress’s appropriations actions of recent years as suspending application of the Controlled Substances Act (CSA) to conduct that complies with New Jersey’s Compassionate Use Act. Accordingly, it further found that the Act is not preempted, and that M&K did not face a credible threat of federal criminal aiding-and-abetting or conspiracy liability. As Justice Solomon explained, “The Compassionate Use Act does not currently present an obstacle to Congress’s objectives as articulated in the recent appropriations riders, and so the CSA does not preempt the Compassionate Use Act as applied to the Order.”
Appellate Division Relies on Hager to Uphold Worker’s Comp Court
In Calmon v. Pepsi Bottling Group, the Appellate Division relied on Hager to uphold a workers’ compensation court order directing Pepsi to reimburse petitioner Brian W. Calmon for the medical marijuana prescribed to treat his work-related back injury. In reaching its decision, the Appellate Division directly cited Hager, which was decided a day before the court was scheduled to hear oral arguments in the appeal.
As the Appellate Division noted, the New Jersey Supreme Court addressed the exact issues Pepsi raised on appeal: that New Jersey’s Jake Honig Compassionate Use Medical Cannabis Act is preempted as applied to a workers’ compensation order directing reimbursement for medical marijuana by the federal Controlled Substances Act, or alternatively, that employers should be treated like private health insurers under the Compassionate Use Act, making them exempt from reimbursement under N.J.S.A. 24:6I-14. The Appellate Division went on to further explain how the New Jersey Supreme Court resolved both issues:
The Court held “the Legislature clearly did not intend for workers’ compensation insurers to be treated as private health insurers . . . under the Compassionate Use Act” and that M&K could abide by both the Controlled Substances Act and the Compassionate Use Act, “that the latter does not currently create an obstacle to the accomplishment of congressional objectives,” and thus “the Compassionate Use Act is not preempted” by the Controlled Substances Act as applied to a workers’ compensation court order directing reimbursement for prescribed medical marijuana.
Noting that the case proceeded on a stipulated factual record and the only issues presented were the legal questions the Court addressed in Hager, the Appellate Division affirmed. “Having considered the record and the parties’ arguments, we affirm the December 2, 2019 order issued by Supervising Judge of Workers’ Compensation Eugene Mulvaney based on the court’s controlling opinion in Hager,” the Appellate Division held.
With the decision in Calmon, both the New Jersey Supreme Court and the New Jersey Appellate Division have now issued decisions requiring employers to reimburse employees’ medical cannabis costs resulting from work-related injuries. While every work injury situation is fact-specific, these decisions indicate a growing acceptance by New Jersey’s highest courts of medical cannabis use as legitimate and reimbursable treatment in certain circumstances. New Jersey employers should remain aware of this trend in New Jersey jurisprudence and review their workplace safety, employment, and human resource structures and protocols accordingly.
If you have questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Dan McKillop, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
This article is a part of a series pertaining to cannabis legalization in New Jersey and the United States at large. Prior articles in this series are below:
Disclaimer: Possession, use, distribution, and/or sale of cannabis is a Federal crime and is subject to related Federal policy. Legal advice provided by Scarinci Hollenbeck, LLC is designed to counsel clients regarding the validity, scope, meaning, and application of existing and/or proposed cannabis law. Scarinci Hollenbeck, LLC will not provide assistance in circumventing Federal or state cannabis law or policy, and advice provided by our office should not be construed as such.
Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract
Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]
Can You Own Part of a New Jersey Business Without a Written Agreement?
Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One
For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
Monmouth County's Next Development Wave: What Developers and Investors Need to Know
Monmouth County is entering a significant new phase of development. For those looking to acquire property or undertake a new project, understanding the market opportunity is only the beginning. The more important question is whether a particular property can actually be developed as contemplated and what approvals, agreements, and other conditions will be required to […]
Are Your Conversations with AI Shielded from Discovery? Courts Are Split
Whether a client’s prompts to a generative AI tool and the documents it produces are protected from disclosure depends on the case type, who claims protection, and whether counsel was involved. In United States v. Heppner, a New York federal judge ruled that a criminal defendant’s communications with an AI platform were protected by neither […]
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs
When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
