New Jersey Appeals Court Reinstates Recreational Cannabis User’s Lawsuit

June 4, 2026

What's New

New Jersey’s appellate court reinstated an applicant’s lawsuit in Sanders v. Levari Group, LLC, concluding that the plaintiff could proceed with claims that she was denied employment after testing positive for cannabis. The trial court had dismissed the case, finding that the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA) did not create a private right of action. The appellate court disagreed and reversed, holding that individuals may bring claims directly against employers for violating the statute’s cannabis anti-discrimination provisions.

What It Means

Since 2021, New Jersey law has prohibited employers from: refusing to hire, discharging, or otherwise taking adverse action against individuals based solely on recreational cannabis use or a positive cannabis test. The Sanders decision confirms that these protections are enforceable through private lawsuits—not just state agency action.

Giving applicants and employees the ability to sue their employers directly if they are denied employment opportunities based on cannabis use increases litigation risk.

What You Should Do

Employers with New Jersey operations should review hiring, testing, and discipline practices to ensure they are not based solely on cannabis use or positive test results. Policies should distinguish between lawful off-duty use and on-duty impairment, which remains actionable.

New Jersey is one of many states that protect off-duty applicant and employee cannabis use. For more information on state cannabis laws, see CWC’s resource Marijuana Employment Protections by State.

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