Perspectives

As marijuana legalization spreads across the country, employers face increasing confusion about how to handle marijuana in the workplace. With a patchwork of state laws, federal regulations that haven’t budged, and complicated questions around testing and impairment, it’s more important than ever to ensure your policies are up to date-and legally compliant. 

Whether you’re navigating medical marijuana requests or figuring out how to handle a positive drug test, here are 20 essential things to know:

1. Marijuna is still illegal at the federal level.

Despite its legalization in many states, marijuna remains a Schedule 1 controlled substance under federal law. That means employers-especially those who follow federal rules-must tread carefully.

2. Employers can enforce drug-free workplace policies.

You still have the right to maintain a zero-tolerance policy-even in states where marijuna is legal-if it aligns with your workplace needs and safety requirements.

3. DOT-regulated employees are prohibited from using marijuana.

The Department of Transportation (DOT) prohibits marijuna use for safety-sensitive roles, regardless of state law or medical authorization.

4. DOT drug tests include THC screening.

A positive marijuana test is considered a federal violation for DOT-regulated employees and can disqualify them from performing safety-sensitive functions.

5. State laws are all over the map.

Some states protect off-duty marijuana use, others don’t. Know the rules in every state you operate in to avoid missteps.

6. Medical marijuana users may be protected by state law.

States like Arizona and Illinois have laws protecting registered medical marijuana users from adverse employment actions-as long as they’re not impaired at work. 

7. Impairment matters more than positive tests in some states.

In certain states, a positive drug test alone isn’t enough for discipline or termination-especially if the employee is a registered medical user. Actual workplace impairment must be demonstrated.

8. On the job impairment is never protected.

Even in the most cannabis-friendly states, being high at work is still grounds for discipline or termination. 

9. Pre-employment testing policies are evolving.

Some states, like Nevada and New York, restrict pre-employment marijuana testing for certain positions. Consider revising your testing policies accordingly.

10. There’s no reliable way to test for real-time impairment.

THC can remain in the body for days or weeks after use. A positive test doesn’t always mean someone is impaired-which compliments enforcement. 

11. In many states, you can still fire someone for a positive test.

Unless state law says otherwise, employers are often within their rights to terminate for marijuana use-but consistency and documentation are critical.

12. Consistent policy enforcement is crucial.

To avoid legal trouble, apply your drug policies fairly and equally across your workforce. Inconsistent discipline can open the door to discrimination claims.

13. Safety-sensitive positions deserve special attention.

It’s reasonable (and often necessary) to apply stricter standards for safety-critical roles where marijuana impairment could be dangerous.

14. Disability accommodations may be triggered.

Some employees using medical marijuana may qualify for accommodations under state disability laws-but marijuana use itself is not protected under the federal ADA.

15. Post-incident testing must be justified.

OSHA discourages automatic post-incident testing unless there’s a reasonable basis. Make sure you’re testing in response to real concerns.

16. Reasonable suspicion testing requires training.

Managers and supervisors should be trained to recognize signs of impairment and document those observations carefully. 

17. Random drug testing must follow clear procedures.

Random testing should be truly random, non-discriminatory, and compliant with any applicable state laws.

18. Off-duty recreational use is protected in some states.

States like California, Minnesota and New Jersey now prohibit adverse employment actions for lawful, off-duty marijuana use in many cases-unless job performance is affected.

19. Clear, written policies are non-negotiable.

A well-crafted policy should spell out expectations, testing procedures, and consequences-and it must include marijuana. 

20. Consult with legal counsel before you terminate.

Especially in states with employment protections, always check with your legal team before disciplining or terminating an employee for marijuana use.

As marijuan laws continue to evolve, employers need to stay proactive. A “one-size-fits-all” drug policy no longer works. The best approach? Stay informed, tailor your policies by jurisdiction and job type, and work with trusted legal counsel to reduce risk while keeping your workplace safe and compliant. 

The Employment and Labor attorneys at Wagner, Falconer and Judd are here to support you through it all. Learn more about our subscription services for businesses-here! 

It’s official-U.S. businesses are off the hook when it comes to the Corporate Transparency Act (CTA). In a major development, the Financial Crimes Enforcement Network (FinCEN) has announced an interim final rule that eliminates the requirement for U.S. companies to file a Beneficial Ownership Information (BOI) report. Instead, only entities formed under foreign laws must comply.

What Happened?

The CTA, which took effect in 2024, originally mandated that most U.S. businesses disclose ownership details to FinCEN as part of an effort to combat illicit financial activities. However, ongoing legal challenges questioning the constitutionality of the CTA led FinCEN to reconsider its stance. Rather than engaging in prolonged litigation, FinCEN has effectively withdrawn the requirement for U.S. businesses, leaving only foreign-formed entities subject to compliance.

What This Means for Employers and Business Owners

If you were preparing to submit a BOI report, you can take that off your to-do list. However, this doesn’t mean compliance requirements in other areas are going away. Employers and businesses should stay vigilant aout other regulatory obligations, such as tax filings, employment laws, and industry-specific reporting requirements. 

What’s Next? 

While this ruling brings relief to many businesses, regulatory landscapes can shift quickly. FinCEN may revisit aspects in the future or introduce alternative reporting measures. WFJ will continue monitoring any updates to keep business owners informed. 

For now, U.S. companies can breathe easier knowing they are not required to comply with the CTA. If you have any questions about corporate compliance, WFJ’s legal team is here to help. Stay informed, stay compliant and focus on what you do best-running your business. 

As you are aware, the Corporate Transparency Act (CTA) has been the subject of ongoing legal challenges and regulatory developments. Recent announcements from the Financial Crimes Enforcement Network (FinCEN) and the Treasury Department have further impacted the enforcement and reporting obligations under the CTA. Given these updates, we want to provide clarity on what this means.

Key Developments

• On February 27, 2025, FinCEN announced it will not be enforcing the beneficial ownership information (BOI) reporting obligations under the CTA until a forthcoming interim final rule takes effect.
• On March 2, 2025, the Treasury Department further confirmed that FinCEN will not impose penalties or fines for failing to file BOI reports, both under the existing deadlines and once the new rule is in place.
• The anticipated rule changes will likely narrow the CTA’s scope, requiring only foreign reporting companies to submit BOI reports, thereby exempting most U.S. businesses.
• These announcements follow a court decision in Smith, et al. v. U.S. Department of the Treasury, which initially reinstated CTA reporting obligations but was subsequently addressed by FinCEN’s decision to delay enforcement.
• FinCEN has committed to issuing an interim BOI Reporting Rule by March 21, 2025, and will open a public comment period for potential revisions.

What This Means for Compliance

For now, compliance with the CTA’s BOI reporting requirements is voluntary, and businesses can decide whether to submit their reports by the current deadline or wait for further regulatory clarity. However, businesses should still consider:

• Preparing the necessary BOI information in case reporting becomes mandatory under the final rule.
• Monitoring further regulatory updates, as the scope of required compliance could shift again.

Next Steps

While waiting for further guidance, businesses should take this opportunity to ensure their internal records and policies are current:

• Review corporate records – Confirm that corporate formation documents, ownership records, and governance materials are up to date.
• Assess contracts and agreements – Ensure business agreements are aligned with the most recent regulatory requirements.
• Update compliance policies – Verify internal compliance procedures remain effective and adaptable to potential changes.
• Organize beneficial ownership records – Maintain accurate ownership details to streamline future compliance efforts.

WFJ will continue monitoring developments and will provide updates as more details emerge. If you or your clients have any questions about CTA compliance, or if you would like assistance in preparing for potential obligations, please reach out.

Wagner, Falconer & Judd remains committed to ensuring that you and your clients are informed and prepared to navigate these evolving regulatory requirements.

Just when you thought you could put the Corporate Transparency Act (CTA) on the back burner, it’s back—and it’s enforceable once again. A federal court in Texas recently lifted the nationwide preliminary injunction that had put the CTA on hold, meaning businesses must now prepare to meet their reporting obligations.

New Reporting Deadline: March 21, 2025 The Financial Crimes Enforcement Network (FinCEN), the federal agency responsible for enforcing the CTA, has announced a new deadline for companies to file their beneficial ownership information (BOI) reports:

• Most businesses that existed before January 1, 2024, or had an original reporting deadline on or before March 21, 2025, must now file their BOI report by March 21, 2025.
• Newer businesses—those created on or after January 1, 2024—must still file their BOI report by their original deadline.

FinCEN has hinted at the possibility of extending this deadline further, but for now, businesses should operate under the assumption that March 21, 2025, is the date to meet.

Who Needs to File? The CTA requires most businesses to file a BOI report unless they qualify for an exemption—of which there are 23. In general, corporations, LLCs, and other entities formed by filing paperwork with a state agency are subject to this requirement. It’s estimated that more than 30 million businesses will need to comply.

If your company existed before January 1, 2024, your BOI report must disclose key company details, including:

• Names of all owners
• A photocopy of each owner’s driver’s license or passport

Failure to comply comes with steep penalties—$500 per day for ongoing violations, plus potential criminal charges, including up to two years in prison and fines of up to $10,000.

What’s Next for Your Business? While there’s still some uncertainty surrounding the CTA and its future litigation, businesses should prepare to comply now to avoid severe penalties. Unless an exemption applies, companies should begin gathering the necessary information to file their BOI report by March 21, 2025.

WFJ will continue to monitor legal developments and any potential deadline extensions from FinCEN. In the meantime, if you need guidance on whether your business is subject to CTA reporting requirements or how to prepare, our legal team is here to help.

Need assistance? Contact WFJ today to ensure your business stays compliant and protected.

In today’s economic climate, layoffs have become a reality for many businesses. Whether driven by economic downturns, restructuring, or shifts in market demand, layoffs can be challenging and emotionally taxing for all involved. However, beyond the human impact, there are significant legal considerations that HR professionals and business leaders must navigate to avoid costly litigation and ensure compliance with employment laws.

Understanding the Legal Framework

Before initiating layoffs, it’s crucial to understand the legal framework governing terminations. Several federal and state laws dictate how layoffs should be conducted:

The Worker Adjustment and Retraining Notification (WARN) Act: This federal law requires employers with 100 or more employees to provide 60 days’ notice before a mass layoff or plant closure. The notice must be given to affected employees, unions (if applicable), and local government agencies. Failure to comply with the WARN Act can result in penalties, including back pay and benefits for the affected employeees.

Anti-Discrimination Laws: Employers must ensure that their layoff decisions do not discriminate against any employees based on race, color, religion, sex, national origin, age, disability, or genetic information, as protected under federal laws like Title VII of the Civil Rights Act, the Age Discrimination in Employment Act (ADEA), and the Americans with Disabilities Act (ADA). Even unintentional biases can lead to claims of disparate impact discrimination.

State Laws and Local Ordinances: Many state have their own WARN Acts with different thresholds and notice requirements. Additionally, local jurisdictions may have specific regulations, particularily in cities with strong employee protections. HR professionals should ensure compliance with all applicable state and local laws.

Creating a Layoff Plan

Once the legal framework is understood, the next step is to craft a comprehensive layoff plan. A well-thought-out plan should include:

Objective Criteria for Selection: To minimize the risk of discrimination claims, employers should establish clear, objective criteria for determining which employees will be laid off. Common criteria include seniority, job performance, and relevant skill level. Documenting these criteria and the decision-making process is critical for defending against potential legal challenges.

Communication Strategy: Transparent and empathetic communication is vital during layoffs. Employers should prepare a communication plan that includes how and when employees will be informed, what information will be provided, and how questions will be addressed. It’s also essential to communicate the business rationale for the layoffs to help manage employee morale and public perception.

Severance and Outplacement Services: While not legally required in most cases, offering severance packages and outplacement services can help mitigate the impact on laid-off employees and reduce the likelihood of litigation. Severance agreements should include a release of claims, but be mindful, such releases must comply with the Older Workers Benefit Protection Act (OWBPA) when involving employees aged 40 or older.

Conducting the Layoff

When the layoff day arrives, it’s important to handle the process with care and professionalism. Whenver possible, inform employees of their layoff status in a private one-on-one meeting. This approach demonstrates respect from the employer and allows for a more compassionate conversation. HR professionals should be present to provide support and address any immediate concerns or questions.

Post-Layoff Considerations

After the layoffs are completed, there are additional considerations to keep in mind:

Continuing Obligations: Employers must continue to comply with any ongoing obligations, such as providing final paychecks, complying with COBRA regulations for health insurance continuation, and adhering to any other state-specific requirements.

Morale and Retention of Remaining Employees: Layoffs can have a significant impact on the remaining workforce. Employers should be proactive in addressing employee concerns, providing support, and reinforcing the company’s future vision to retain key talent and maintain productivity.

Conclusion

Layoffs are a complex and sensitive issue that requires careful planning and considerations of legal obligations. By understanding the legal landscape, developing a thoughtful layoff plan, and communicating transparently with employees. HR professionals and business leaders can navigate the challenging process while minimizing legal risks and maintaing the trust and respect of their workforce.

Remember, when in doubt, consult with an experienced employment attorney to ensure that your layoff process is compliant and that you are taking all necessary steps to protect your business. 

Starting January 1, 2025, New York will become the first state in the coutnry to offer Paid Prenatal Leave, setting a precedent for employment legislation nationwide. This groundbreaking law grants employees 20 hours of paid leave for healthcare services related to pregnancy. These services include physical examinations, medical procedures, monitoring, testing, and discussions with healthcare providers about pregnancy.

Key Details Employers Need to Know:

• Coverage for all Private Employers: Regardless of size, all private employers in New York must comply with this law. Whether your business employs one person or 1,000, Paid Prenatal Leave is mandatory.
• Immediate Eligibility: Employees are entiltled to Paid Prenatal Leave from the moment they are hired, eliminating any waiting periods for eligibility.
• Additional to Sick Leave: Paid Prenatal Leave is in addition to New York’s existing Sick Leave Requirements. Employees are entiltled to 40 or 56 hours of Sick Leave (depending on employer size) plus an additional 20 hours specifically for prenatal care.

What This Means for Employers

This new requirement adds to the already complex framework of employment laws in New York. Employers must adjust their policies, track Paid Prenatal Leave seperately from other leave types, and ensure they remain compliant to avoied potential penalties. The law’s universal application, even for small businesses, means no employer is exempt from these changes.

Partner with WFJ to Stay Ahead

Navigating employment legislation can be challenging, especially with New York setting new precendents.. WFJ’s Compliance Center is here to help. Our team of experienced attorneys and SHRM-certified professionals can guide you in updating your policies, answering your questions, and ensuring compliance with the Paid Prenatal Leave law and other evolving regulations.

Don’t wait until you’re impacted by a new law-contact WFJ today to partner with a legal team dedicated to keeping your business compliant and protected in the face of ever-changing employment laws. 

As 2024 draws to a close, we want to reflect on the critical legal developments of the past year and prepare for the challenges and opportunities ahead. This year has been marked by significant changes across employment law, compliance regulations, and workplace standards. Staying informed is no longer optional-it’s essential to protect your business and foster growth.

Key Legal Updates from 2024

FTC’s Nationwide Non-Compete Ban 

While a Texas federal judge blocked the FTC’s non-compete ban, the regulatory environment remains dynamic. The FTC is likely to appeal, and the state-specific restrictions on non-compete agreements continue to evolve. Employers must tread carefully, especially with the NLRB’s increased focus on these agreements.

DOL Salary Threshold Adjustments

Changes to salary threshold rules have created new challenges for employers. While some salary adjustments may no longer be required, rolling back pay increases could impact employee morale. Employers should remain aligned with current legal standards and future appeals.

OSHA Updates

Enhanced workplace safety standards were introduced, including updated heat illness prevention rules and compliance requirements for indoor workplaces.

State-Specific Legislation

From California’s expanded whistleblower protections to Minnesota’s updates on wage transparency and classification laws, states have been highly active in updating employment regulations. Many of these laws take effect in early 2025, such as Minnesota’s minimum wage increase and job posting pay range requirements.

Preparing for 2025

The new year brings stricter requirements and evolving expectations, such as salary transparency laws in Massachusetts and Vermont, expanded leave protections in Connecticut, and revised minimum wage standards across several states. Employers must remain proactive to avoid penalties and ensure compliance.

Why Partner with WFJ?

At WFJ, we understand that navigating these complex changes can be overwhelming. Our team of experts is here to provide tailored solutions, helping you:

• Monitor regulatory changes and asses their impact on your business.
• Update workplace policies and agreements to align with federal and state laws.
• Foster a compliant and motivated workforce while mitigating risks.

With WFJ as your trusted partner, you’ll stay ahead of the curve in 2025 and beyond. Together, we can safeguard your business, ensuring you remain compliant while building a strong foundation for future success.

Let’s Get Started

Don’t let compliance challenges hold you back. Contact WFJ today to schedule a consultation with our Compliance Center and prepare for a legally secure 2025.