01/07/2026
On December 18, 2025, President Donald Trump signed an executive order directing federal agencies to expedite the process of moving cannabis from Schedule I to Schedule III under federal law.
The order is intended to reduce barriers to research and acknowledge potential medical uses, which could ease restrictions on scientific
study and other regulatory burdens.
Important nuance: The executive order itself does not immediately change the legal classification by statute — it directs the Attorney General and DEA to complete the formal rescheduling process. In other words, the reclassification will occur through subsequent federal agency action, not instantly.
What This Means for Employers Right Now
You should expect questions — and pressure — quickly. Many
employees may assume cannabis is now “legal.” It is not.
This change also creates additional gray areas for employers, particularly around:
• Off-duty use and accommodation requests
• State-specific protections for lawful use
• Ensuring disciplinary actions are tied to safety and impairment,
not simply a positive test result that may reflect prior
off-duty use
What Has Not Changed
Several critical employer protections and responsibilities remain
in place:
• Employers may still prohibit on-duty use, possession, and
impairment and enforce workplace safety rules
• State laws continue to govern most employment protections —
and they remain inconsistent across the country
• DOT-regulated, safety-sensitive roles are not impacted by this
change; federal testing requirements still apply
• Federal contractors and grantees must still comply with Drug-
Free Workplace requirements
What We Recommend Employers Do Now
To stay compliant and defensible, employers should:
• Review written drug and alcohol policies to clearly address off-
duty use, on-duty impairment, and safety-sensitive position
• Refresh supervisor training on reasonable suspicion and
post-incident decision-making — this is where most
inconsistencies occur
• Confirm that your testing program aligns with your risk profile and clearly answers: what are we testing for, and why?
• Prepare a brief employee communication outlining what
changed federally, what did not, and how workplace safety will
continue to be enforced
How ARCpoint Labs Can Help
ARCpoint Labs works with employers every day to navigate changes like this. We can:
• Review and update your drug-free workplace policies
• Help assess whether your current testing program aligns with
your risk, industry, and regulatory requirements
• Provide supervisor training on reasonable suspicion and
post-incident response
• Support compliance for DOT, safety-sensitive roles, and federal
contractor requirements
If you have questions about how this executive order impacts your workplace — or want help making sure your policies and testing program are aligned — ARCpoint Labs of Salinas and Monterey Bay is here to help.
