
Daniel T. McKillop
Partner
201-896-7115 dmckillop@sh-law.comFirm Insights
Author: Daniel T. McKillop
Date: June 25, 2021
Partner
201-896-7115 dmckillop@sh-law.comWhen New York legalized the recreational use of cannabis for adults 21 and over, it also amended the state’s off-duty conduct law. As amended, New York Labor Law § 201-d generally prevents employers from taking adverse actions in response to an employee’s use of cannabis outside the workplace.
New York’s off-duty conduct law prohibits discrimination against employees based on their lawful off-duty conduct and applies to all employers with employees in New York. Covered conduct includes political activities, the legal use of consumable products, such as alcohol and tobacco, and other legal recreational activities outside work hours and off the employer’s premises. “Work hours” is defined as “all time, including paid and unpaid breaks and meal periods, that the employee is suffered, permitted or expected to be engaged in work, and all time the employee is actually engaged in work.”
New York Labor Law § 201-d contains several exceptions. For instance, it does not protect activity that creates a material conflict of interest related to the employer’s trade secrets, proprietary information or other proprietary or business interest. Additionally, an employer does not violate the law when it takes action based on the belief either that: (i) the employer’s actions were required by statute, regulation, ordinance or other governmental mandate, (ii) the employer’s actions were permissible pursuant to an established substance abuse or alcohol program or workplace policy, professional contract or collective bargaining agreement, or (iii) the individual’s actions were deemed by an employer or previous employer to be illegal or to constitute habitually poor performance, incompetency or misconduct.
On March 31, 2021, Gov. Andrew Cuomo legalized recreational cannabis by signing the New York Marihuana Regulation and Taxation Act (MRTA) into law. The MRTA includes several provisions that address legal cannabis use by employees.
With regard to off-duty cannabis use, New York Labor Law § 201-d now makes it unlawful for an employer to refuse to hire, employ or license, or to discharge from employment or otherwise discriminate against an individual because of:
The MRTA also adds new cannabis-related exceptions to the off-duty law. Employers do not violate the law when taking an action related to the use of cannabis in the following circumstances:
Because the amendments took effect immediately, employers should review their employee policies and procedures, including employee handbooks, to determine what changes may be necessary. It is important to note that while the MRTA prohibits employers for taking an adverse action in response to off-duty recreational cannabis use, it does not prohibit them from maintaining a drug-free workplace. Accordingly, employers may still prohibit workers from using, consuming, or possessing cannabis during work hours or on the business premises. As noted above, the new exceptions related to cannabis also allow employers to discipline employees for on-the-job impairment.
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.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
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!