In a case of first impression, the New Jersey Appellate Division determined that employers in the state must reimburse employees for medical cannabis following a workplace accident, despite federal prohibitions against cannabis distribution. The January 13, 2020 decision in Hager v. M&K Construction, Case No. A-0102-18T3, is the first time a court in the state has required reimbursement for a cannabis prescription in the workers’ compensation context, and may signal a fresh judicial focus on the scope of lawful medical cannabis use in the employment context both in New Jersey and in states with similar laws.
The Hager decision has clear implications for New Jersey employers, who are now required to reimburse injured employees for medical cannabis (at least under circumstances similar to those presented in the case). Employers in other states that have legalized medical cannabis but have yet to rule on the interplay between the Controlled Substances Act (“CSA”) and state law in workers’ compensation disputes should also take note in the event that similar reimbursement requests arise.
Petitioner Vincent Hager (“Hager”) was employed by respondent M&K Construction (“M&K”) when he was crushed by a load dropped by a concrete delivery truck, resulting in spinal injury and chronic back pain. After lumbar fusion failed to address his pain and he became addicted to prescribed opioid medication, Hager found both pain relief and an opioid alternative through medical cannabis prescribed by his doctor in accordance with New Jersey’s Compassionate Use Medical Marijuana Act (the “MMA”). Hager sought reimbursement from M&K for the prescribed cannabis under applicable workers’ compensation statutes. M&K rejected the request and refused to remit payment. A judge of compensation determined that M&K was obligated under the MMA and relevant workers’ compensation law to reimburse Hager for the cost of medical cannabis and related expenses, noting that medical cannabis was a preferable choice for Hager because it relieved his pain and allowed him to overcome his opioid addiction.