DOJ Takes First Steps Toward Federal Marijuana Reclassification: Implications for Employers in Indiana, Ohio, and Michigan

The U.S. Department of Justice (DOJ) recently announced a significant change in federal marijuana policy. Effective immediately, FDA-approved marijuana products and state-licensed medical marijuana products have been placed into Schedule III of the Controlled Substances Act, while the Drug Enforcement Administration (DEA) begins reviewing whether marijuana should be more broadly rescheduled from Schedule I to Schedule III. Schedule III substances are recognized as having accepted medical uses and are generally subject to less restrictive federal controls than Schedule I substances. According to the DOJ, this action aims to expand access to medical treatment options, support further research, and provide greater regulatory clarity while maintaining federal oversight of illicit drug activity.

While this announcement does not legalize marijuana federally, it represents a significant federal policy development and signals ongoing momentum toward broader acceptance of medical marijuana. The broader rescheduling proposal remains under review, with DEA hearings having begun in June 2026.

What does this mean for employers?

For most employers, the immediate impact is limited. Marijuana remains a controlled substance under federal law, and employers generally retain the right to maintain drug-free workplace policies, prohibit on-duty impairment, and conduct drug testing in accordance with applicable state law. However, the evolving federal landscape may raise employee expectations regarding marijuana use and could prompt additional legislative activity at the state level. Employers should anticipate increased questions regarding medical marijuana accommodations and evolving expectations surrounding workplace testing.

Indiana: No Immediate Change

Indiana remains one of the few states without a medical marijuana program. State regulators recently confirmed that Indiana law will not change unless federal reclassification becomes final and the state’s review process is triggered. Meanwhile, Indiana Senator Mike Bohacek has announced plans to introduce medical marijuana legislation for the 2027 legislative session, although recreational legalization is not currently being considered.

For Indiana employers, existing workplace policies generally remain unchanged. Employers may continue to enforce zero-tolerance drug policies and conduct marijuana testing consistent with both state and federal law.

Ohio and Michigan: Continued Focus on Impairment

Employers in Ohio and Michigan face different challenges, as both states have legalized marijuana to varying degrees. While Ohio and Michigan permit lawful marijuana use under state law, employers generally retain significant authority to prohibit workplace impairment, enforce drug-free workplace policies, and discipline employees for violations of those policies.

The DOJ’s announcement encourages additional discussion regarding employee accommodations, testing practices, and impairment standards. Employers should continue to focus on observable impairment, provide supervisor training, and maintain clear workplace policies rather than relying solely on positive THC test results to establish current impairment.

Key Takeaway

The DOJ’s action reflects continued federal movement toward recognizing accepted medical use of marijuana, but it does not eliminate employer discretion over workplace drug policies. Indiana employers will see little immediate change, while Ohio and Michigan employers should closely monitor developments as federal and state laws evolve. Now is an opportune time to review drug and alcohol policies, testing protocols, and supervisor training programs to ensure alignment with the changing legal landscape.

For questions about updating workplace drug testing policies, accommodating medical marijuana users, or managing impairment-related issues, please contact a member of our Labor & Employment team listed below.