New Jersey: Medical Marijuana Prices Reimbursable in Staff’ Compensation Situation

Q: Is medical marijuana an employer-reimbursable expense?

A: For New Jersey employers, the answer is likely yes. Weednews reports that New Jersey and 34 other states have legalized marijuana for medical use since Jan. 9, although it remains a Schedule 1 controlled substance at the federal level. As a result, patients have had to pay out of pocket for medical marijuana as insurers claim that covering the costs would violate the federal marijuana ban under the Controlled Substances Act (CSA). Recently, however, the New Jersey Supreme Court unanimously upheld the ruling in Hager v M & K Construction, 462 NJ Super. 146 (App. Div.) That a worker injured in the workplace is entitled to reimbursement of medical marijuana costs from their employer under New Jersey state compensation laws.

Vincent Hager (Hager), an employee of M&K Construction, suffered multiple injuries that resulted in chronic pain when a truck poured cement on him. In 2016, Hager was prescribed medical marijuana as therapy to relieve his pain and to stop him from using opioids. M & K appealed an employee compensation order claiming it was not responsible for reimbursing Hager’s medical marijuana expenses because the CSA anticipated the New Jersey Compassionate Use Medical Marijuana Act (MMA) and reimbursement of expenses actually aid medical marijuana and encourage illegal activities. In addition, the company argued that despite the legalization of medical marijuana use under the MMA in 2010, the MMA does not need private health insurers or government medical assistance programs to cover medical marijuana costs.

The New Jersey Supreme Court found that a recent Congressional budget regulation effectively suspended the CSA in relation to the MMA, and contradicted M & K’s arguments and upheld the appeals court’s decision to approve the workers’ compensation order for reimbursing Hagers Maintain medical marijuana spending. “Because we are completing the job, this is not necessary [employers] In order to own, manufacture or distribute marijuana, but only to compensate the petitioner for his purchase of medical marijuana, we see no conflict between the CSA (Federal Controlled Substances Act) and MMA (the New Jersey Compassionate Use Medical Marijuana Act). “The court also found that the plaintiff’s use of medical marijuana was“ appropriate and necessary ”and denied M & K’s allegation that the reimbursement of Hager would result in potential criminal liability. “Hager’s reimbursement under a court mandate can hardly be interpreted as an M & K ‘elect[ing]’To support Hager’s possession of marijuana, contrary to federal law … Rather, it is forced to do so by the command. Vincent Hager v M & K Construction (A-64-19) (084045).

In an attempt to codify the Hager decision, New Jersey lawmakers tabled a bill (A1708) that provides for Worker Compensation for Worker Compensation and Personal Injury Protection (PIP) in certain circumstances to help offset costs cover for medical marijuana.

With the vast majority of states already legalizing the use of medical marijuana, Hager’s effects may be widespread and other states may follow New Jersey’s lead. In addition, state courts must determine the extent to which the CSA does not prevent state medical marijuana laws and job security for employees who use marijuana for medical treatment.