DOJ Orders Immediate Reclassification of Certain Medical Marijuana Products to Schedule III
On April 22, 2026, Acting Attorney General Todd Blanche issued a final order directing the U.S. Department of Justice to move specific marijuana‑containing drug products from Schedule I to Schedule III of the Controlled Substances Act (CSA). The order applies to FDA‑approved marijuana drug products and marijuana that is subject to a state‑issued medical marijuana license. While the reclassification does not legalize recreational cannabis at the federal level, it removes several barriers to medical research and may affect employer policies nationwide.
Quick Hits: What the Order Does
- Reclassifies FDA‑approved marijuana products and state‑licensed medical marijuana to Schedule III.
- Leaves non‑medical (recreational) marijuana and synthetic THC in Schedule I.
- Does not overturn state medical or recreational marijuana laws; federal preemption still applies where conflict exists.
- Triggers an expedited DEA registration process for entities holding state medical marijuana licenses.
- Sets a DEA hearing on the broader rescheduling proposal for June 29, 2026.
Significance of the Reclassification
Under the CSA, Schedule I substances are defined as having “no currently accepted medical use in the United States, a lack of accepted safety for use under medical supervision, and a high potential for abuse” (21 U.S.C. § 812). Marijuana’s placement in this category for decades limited federally funded research and created legal uncertainty for businesses operating in state‑legal markets.
Schedule III, by contrast, covers substances with a “moderate to low potential for physical and psychological dependence” and accepted medical uses. Examples include ketamine, acetaminophen with codeine, anabolic steroids, and dronabinol—a synthetic THC formulation already FDA‑approved for nausea and appetite stimulation. By moving approved medical marijuana products to Schedule III, the order acknowledges their therapeutic value and opens the door for:
- Increased eligibility for federal research grants.
- Streamlined manufacturing and distribution processes for licensed entities.
- Greater clarity for healthcare providers considering cannabis‑based therapies.
Key Implications for Employers
ADA Reasonable Accommodation Claims
The Americans with Disabilities Act (ADA) requires employers to provide reasonable accommodations for qualified individuals with disabilities, unless doing so would impose an undue hardship. Historically, courts rejected accommodation requests based on medical marijuana use because the drug remained illegal under federal law (see, e.g., James v. City of Costa Mesa, 2020). With the reclassification recognizing accepted medical use, employees may now argue that denying accommodation for lawful, state‑authorized medical marijuana constitutes disability discrimination.
Employers should:
- Review existing ADA accommodation procedures to ensure they consider state‑legal medical marijuana use where appropriate.
- Document the interactive process and any safety‑related reasons for denying accommodation.
- Stay informed about evolving case law, as courts may begin to weigh federal rescheduling against workplace safety concerns.
Workplace Policies and Drug Testing
Even after rescheduling, employers generally retain the right to:
- Prohibit the use, possession, or impairment of marijuana in the workplace.
- Maintain drug‑free workplace policies consistent with federal and state law.
- Conduct drug testing, provided they comply with applicable state and local statutes (e.g., protections for off‑duty use in states like Nevada or New York).
The shift to Schedule III may intensify public discourse around zero‑tolerance policies, particularly for employees who use medical marijuana outside work hours and show no impairment on the job. Employers may wish to:
- Clarify policies distinguishing permissible off‑duty medical use from prohibited on‑duty impairment.
- Train supervisors to recognize signs of impairment rather than relying solely on test results.
- Consider offering employee assistance programs that address substance use holistically.
The Medical vs. “Non‑Medical Use” Distinction
The DOJ order explicitly limits the Schedule III placement to marijuana contained in FDA‑approved drug products or marijuana covered by a state medical license. It states that the registration does not authorize manufacture, distribution, dispensing, or use for non‑medical purposes. Synthetic THC compounds not derived from the plant remain in Schedule I.
This creates a nuanced landscape where the same chemical entity—delta‑9‑THC—can be legal under state medical law yet remain federally prohibited when used recreationally. Employers operating in multiple jurisdictions should track:
- Which states have medical marijuana programs that align with the federal rescheduling.
- Any state statutes that expressly protect off‑duty medical marijuana users from adverse employment actions.
- Local ordinances that may impose additional testing or notice requirements.
Department of Transportation (DOT) Considerations
The DOT’s current regulations prohibit marijuana use by safety‑sensitive employees (e.g., truck drivers, pilots, pipeline workers) based on the drug’s Schedule I status. A December 19, 2025, DOT notice indicated that the agency would not alter its drug‑testing rules unless and until a federal rescheduling occurs. While the recent order moves certain marijuana products to Schedule III, the DOT is not obligated to revise its policy automatically.
Stakeholders should anticipate:
- Potential guidance from the DOT later in 2026 addressing how Schedule III status fits within its safety‑critical mandate.
- Continued reliance on existing testing thresholds (e.g., 50 ng/mL THC metabolite) unless the agency revises cut‑off levels.
- Opportunities for industry groups to submit comments during the upcoming DEA hearing on broader rescheduling.
Next Steps for Employers
To navigate this evolving regulatory environment, employers may consider the following actions:
- Audit existing drug‑testing and accommodation policies for alignment with both federal CSA changes and state‑specific marijuana laws.
- Consult legal counsel experienced in employment law, ADA compliance, and controlled substances regulations.
- Monitor announcements from the DEA, HHS, and DOT, particularly the outcomes of the June 29, 2026 hearing.
- Update training materials to help managers differentiate between lawful medical use and impairment‑related misconduct.
- Leverage resources such as Ogletree Deakins’ Client Portal for up‑to‑date summaries of state medical and recreational marijuana laws, as well as template policies.
Conclusion
The DOJ’s decision to reschedule certain FDA‑approved and state‑licensed marijuana products to Schedule III marks a notable shift in federal cannabis policy. While it does not end federal prohibition of recreational marijuana, it validates the medical utility of cannabis and may influence research, healthcare practices, and workplace policies. Employers who proactively review their policies, stay informed about regulatory developments, and maintain clear, legally sound procedures will be best positioned to accommodate legitimate medical use while safeguarding workplace safety.
For the original Ogletree Deakins analysis, see: Here
