Two recent developments may lead to New Jersey employers being required to reimburse the cost of medical marijuana for workers’ compensation recipients. In a case of first impression, New Jersey’s Appellate Division, in Vincent Hager v. M&K Construction, affirmed a July 2018 order handed down by a workers’ compensation judge requiring an employer to reimburse the cost of medical marijuana used to treat pain resulting from a workplace injury. Following this decision, the New Jersey legislature introduced A1708, which would require all workers’ compensation carriers (in addition to private passenger automobile insurance carriers) to cover the costs of medical marijuana.
The Appellate Division’s decision is particularly important as an in-depth analysis of the interplay between New Jersey and federal laws addressing marijuana. Employers can view the decision as a guidepost for how future courts might evaluate marijuana as a reasonable and necessary treatment in workers’ compensation cases. However, the proposed legislation could change this evaluation, as workers’ compensation patients seeking reimbursement for medical marijuana would be required to first try an alternative treatment method.