EMPLOYMENT LAW NEWS

Legalized Marijuana in Illinois: 5 Things Employers Need to Know

By GovDocs
Updated August 2025

Marijuana Laws in Illinois

What do employers need to know about legalized marijuana in Illinois?

What do employers need to know about legalized marijuana in Illinois?

Recreational use of marijuana in Illinois became legal Jan. 1, 2020, for adults 21 or older. In December 2019, the state clarified the law, which gave employers a better sense of how to address the specifics of dealing with marijuana use among employees and potential hires.

Marijuana, of course, remains illegal under federal law. But the expansion of legal weed across the country continues to be a sticking point for employers.

Guide: Recreational Marijuana – What Employers Need to Know

Legalized Marijuana in Illinois: What Employers Need to Know

Here, we’ll examine five things’ employers need to know about legalized marijuana in Illinois.

1. Companies can’t take adverse action against employees for use during non-work hours

Employers cannot discharge or discriminate against employees for lawful marijuana use during non-work and non-call hours. Marijuana was added to the list of products that are legal under state law.

However, the Cannabis Regulation and Tax Act also gives employers plenty of leeway when it comes to drug-free workplace policies. Which brings us to our next point.

2. Employers can take action based on marijuana in the workplace

Despite its legalization, employers are free to ban the use and possession of marijuana in the workplace. Employers can also ban workers from using it while on-call. Employers may also discipline or terminate employees for being under the influence of marijuana during work hours or while on call.

The tricky part of the law for employers in Illinois employers is identifying workplace impairment.  But the law provides some guidance when it comes to identifying symptoms of marijuana usage. Generally, the legislation outlines signs impairment as:

  • Changes in speech and demeanor
  • Impaired dexterity, agility and coordination
  • Irrational or unusual behavior
  • Negligence or carelessness when operating equipment or machinery

With remote employees, employers may want to focus on regulating usage by time, not place.

Keep Informed
with GovDocs Employment Law News

3. “Impairment” is still a gray area

Despite those tips for employers in the law, impairment remains tough to prove.

Unlike a breathalyzer, there is no test that shows how high a person is (only whether they have used marijuana), creating difficulty for employers to prove impairment. Also, the rise of edible forms of marijuana means employers may not be able to simply tell by smell whether a worker has been using it.

Meanwhile, the law also says: “If an employer elects to discipline an employee on the basis that the employee is under the influence or impaired by cannabis, the employer must afford the employee a reasonable opportunity to contest the basis of the determination.”

4. Employers can reject job applicants, and discipline workers, based on a positive test

In Illinois, companies can still conduct “reasonable drug and alcohol testing” of both current and prospective employees.

Though state law allows companies to reject applicants and discipline employees based on a positive test, companies could face legal challenges. Employment law decisions related to marijuana should be based on actual impairment at work or failure to perform job duties due to cannabis while working – not just a positive test.

Employers may be justified in refusing to hire applicants based on a positive test if required by federal law, contracts, or to avoid losing federal funding. Safety sensitive positions where impairment could reasonably result in harm also allow more flexibility.

5. Policies should be nondiscriminatory

However a company implements a policy regarding drug use, maintaining compliance means those policies must be applied evenly. Disciplining or terminating an employee based on impairment at work should be based on a “good faith belief” of impairment or being under the influence. This should be supported by observing specific symptoms that would decrease job performance.

Expansion of Marijuana Legalization

The tide of states legalizing recreational marijuana doesn’t seem to be slowing. Plus, public support for legalized marijuana has been growing, according to the Pew Research Center.

Ultimately, companies must be aware of new laws, and guidance from state departments, regarding marijuana in the workplace, appropriate hiring practices and employee rights.

This blog was originally published in January 2020 and has been updated.

This Employment Law News Blog is intended for market awareness only, it is not to be used for legal advice or counsel.

What is GovDocs?

GovDocs is a leading provider of employment law compliance solutions, empowering HR professionals to navigate complex, location-specific labor law postings, minimum wage requirements, and paid leave laws. GovDocs combines innovative technology with dedicated human-touch support to deliver worry-free compliance. Customers benefit from access to a centralized system, trusted resources, and expert employment law support they need, all in one place, to simplify compliance and protect their organization from risk. Trusted by over 35% of Fortune 500 companies, GovDocs focuses on comprehensive coverage of Federal, State, City, and County laws making employment law management seamless for organizations of all sizes. Join the evolution of employment law compliance here

Have fewer than 30 locations? 

The GovDocs Poster Store simplifies posting compliance for employers with less than 30 locations across all industries, offering a variety of posting products to meet your labor law compliance needs.