NJ Appellate Court Lets Job Seekers Sue for Cannabis Discrimination

NJ appellate court rules job applicants can sue for cannabis law violations.

On May 26, 2026, the Superior Court of New Jersey, Appellate Division, issued a significant ruling in Sanders v. The Levari Group, LLC, clarifying who may bring lawsuits over cannabis law violations under the New Jersey Cannabis Regulatory, Enforcement Assistance, and Market Modernization Act (CREAMMA).

The court found that both job applicants and employees have standing to sue employers who violate CREAMMA provisions. This ruling reversed the initial trial court dismissal from April 2024, which had found no private cause of action existed under the law.

Darlene Sanders applied for a customer service position with The Levari Group, LLC in December 2022. After a conditional offer, she tested positive for cannabis in a pre-employment drug test. When Sanders declined to pay for a repeat drug test, her offer was rescinded. She sued, alleging the rescission violated CREAMMA's prohibition against denying employment solely on the basis of positive cannabis test results.

The Appellate Division recognized an implied private right of action allowing individuals to hold employers accountable for such violations. As Michael J. Westwood-Booth, an attorney specializing in employment law, noted, "The Appellate Division's decision underscores the importance of understanding and complying with CREAMMA's provisions to avoid potential litigation."

This ruling provides much-needed clarity for litigators and in-house counsel navigating employer obligations and employee rights in New Jersey's evolving cannabis legal environment. Employers must ensure their drug testing and hiring practices align with CREAMMA standards to mitigate litigation risks.