UPDATE: New Jersey Employers Must Pay for Pot

In January 2020, we reported on a groundbreaking New Jersey Superior Court decision. On April 13, 2021, the New Jersey Supreme Court affirmed the Superior Court’s decision in Hager v. M&K Construction that required New Jersey employers to reimburse the cost of medical marijuana for injured workers. The cost of reimbursing medical marijuana can be significant in light of the fact that New Jersey does not have any set schedule for re-pricing charges from medical providers. However, if medical marijuana can substitute some more expensive pain management such as opioids, injections and even surgery, there could be a cost saving with this decision. We plan to argue in future cases that this trade-off is needed in order for the marijuana treatment to be considered reasonable and necessary.

Read below for previous decision information.

In a groundbreaking decision, the New Jersey Superior Court decided the outcome of the confusing dispute between federal and state medical marijuana laws when it comes to paying for medical marijuana as a workers’ compensation benefit. In Hager v. M&K Construction, A-0102-18T3 (App. Div. January 13, 2020), the court held that the federal Controlled Substances Act (CSA), 21 USC §841, does not preempt the NJ Compassionate Use Medical Marijuana Act (MMA), NJSA 24:61-1 to 29. In other words, the federal law does not prevent New Jersey from requiring employers to pay for medical marijuana.

Background

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