As Medical Marijuana looms ever larger on the horizon, employers are nervously considering whether they might run afoul of Federal law by paying for an illegal drug.  One question that has emerged is whether states can require an employer to pay for Medical Marijuana, when doing so might put an employer in violation of the Federal Controlled Substance Act.  In Maine, at least, we now know the answer is a definitive “No”.

A Maine workers’ compensation recipient, Gaetan Bourgoin, filed a claim seeking to require Twin Rivers Paper Company to pay the costs associated with medical marijuana. The company, through its third party administrator, Sedgwick CMS, refused, arguing that the federal Controlled Substance Act barred it from paying for marijuana. The Maine Workers’ Compensation Board ruled in favor of Bourgoin and the state appeals court affirmed.  Twin Rivers appealed to the State Supreme Court.

In a 5-2 decision, the Maine Supreme Court agreed with the Employer.  The Court held that there is a conflict between the Federal and state medical marijuana law, and as a result, the Federal Controlled Substance Act preempts the state’s medical marijuana law.   In reaching their decision, the court noted that federal law bars use of marijuana, and any other schedule 1 drug, even for medical purposes. Therefore, ordering an employer to compensate an employee for medical marijuana costs improperly requires an employer to aid and abet in the commission of a federal crime.

 This case is not only significant for employers in Maine, but throughout the country.   While the case is not controlling in other states, the logic of the decision may be.   Time will tell whether other states, including Pennsylvania, follow the reasoning of the Maine Supreme Court and bar state legislatures from requiring employers to pay for Medical Marijuana.

The case can be found at Bourgoin v. Twin Rivers Paper Co., LLC, 2018 ME 77.