California SB 700: Cannabis Use Protections and Job Exemptions

California’s cannabis employment discrimination law, codified at Government Code Section 12954, makes it illegal for most employers to fire you, refuse to hire you, or otherwise penalize you because you use cannabis off the job or because a drug test found non-psychoactive cannabis metabolites in your system. The rule took effect on January 1, 2024, and sits inside the California Fair Employment and Housing Act (FEHA), which means violations carry the same uncapped remedies as other FEHA discrimination claims. Several categories of jobs are carved out, and the law never protects on-duty use or impairment at work.

What the Law Protects

Section 12954 gives you three specific protections in hiring and employment.

First, an employer cannot discriminate against you in hiring, firing, or any other condition of employment because you use cannabis off the job and away from the workplace.1California Legislative Information. California Government Code 12954

Second, an employer cannot take action against you based on a drug test that found non-psychoactive cannabis metabolites in your hair, blood, urine, or other bodily fluids.1California Legislative Information. California Government Code 12954 This is the practical heart of the statute. After your body processes THC, it stores non-psychoactive metabolites that can linger for weeks. Traditional urine and hair tests pick up those metabolites, which tell an employer nothing about whether you were impaired at work. The legislature found no correlation between non-psychoactive metabolites and on-the-job impairment.2California Legislative Information. Assembly Bill 2188

Third, an employer cannot ask job applicants about their prior cannabis use. Even if the employer never runs a drug test, the interview question itself is off limits. One narrow exception exists: if a criminal background check reveals cannabis-related history, the employer may consider that information only to the extent already allowed under California’s fair-chance hiring rules (Government Code Section 12952) or other state or federal law.3California Legislative Information. Senate Bill 700

What Employers Can Still Do

The statute does not ban drug testing outright, and it does not turn cannabis into a workplace right. It bans a specific combination: testing methods that flag non-psychoactive metabolites, and then using those results against you.

Employers can still test through methods that detect active THC rather than stale metabolites. Oral fluid (saliva) testing is the most common compliant method because it detects the parent THC compound and reflects recent use. The statute also explicitly allows “scientifically valid preemployment drug screening” so long as the method does not screen for non-psychoactive metabolites.1California Legislative Information. California Government Code 12954 Some employers also use impairment-based assessments that measure cognitive and motor function against the worker’s own baseline, sidestepping the metabolite question altogether.

The law also expressly preserves an employer’s right to maintain a drug- and alcohol-free workplace under Health and Safety Code Section 11362.45 and any other applicable state or federal law.1California Legislative Information. California Government Code 12954 Nothing in Section 12954 lets you possess or use cannabis at work or show up impaired. An employer can still discipline you for being impaired on the job, possessing cannabis on company property, or using during work hours. If a compliant test shows active, psychoactive THC, that result suggests current or very recent use, and the statute does not shield it.

Jobs That Are Not Covered

Three groups fall outside Section 12954 entirely. If your job fits one of these categories, your employer can continue using traditional cannabis testing and policies.

Building and Construction Trades

The off-duty use and metabolite testing protections do not apply to employees in the building and construction trades.1California Legislative Information. California Government Code 12954 Construction employers can test for metabolites and act on the results without violating the statute.

Federal Security Clearance Positions

The law does not apply to anyone hired for a position requiring a federal government background investigation or security clearance under Department of Defense regulations (32 C.F.R. Part 117) or equivalent requirements from other federal agencies.1California Legislative Information. California Government Code 12954 If your role requires you to hold or obtain a federal clearance, the employer can keep strict cannabis policies in place.

Federally Required Testing

Section 12954 does not override any state or federal law that requires controlled-substance testing as a condition of employment, federal funding, federal licensing benefits, or a federal contract.1California Legislative Information. California Government Code 12954 Commercial truck drivers subject to Department of Transportation testing, nuclear facility workers, and employees on federal contracts with drug-free workplace mandates all remain subject to those federal rules. Where a federal rule requires testing and specifies how, California’s cannabis protections step aside.

Medical Cannabis Is Not a Workplace Accommodation Right

Section 12954 protects recreational and medical cannabis users equally for off-duty use. What it does not do is create a right to use cannabis at work or to have on-duty use accommodated. The Ninth Circuit held in James v. City of Costa Mesa that the Americans with Disabilities Act excludes coverage for medical marijuana use because illegality under the ADA is measured by federal law, and cannabis remains a Schedule I controlled substance federally.

The practical line: if you have an underlying disability, your employer cannot discriminate against you because of the disability itself. But the ADA imposes no obligation to accommodate your cannabis use specifically. Section 12954 shields off-duty use from adverse employment action; it does not give you a right to be impaired on the job.

How to File a Complaint

If you believe an employer violated Section 12954, your claim runs through FEHA enforcement at the California Civil Rights Department (CRD), formerly the Department of Fair Employment and Housing.

You have three years from the date of the discriminatory act to submit an intake form to CRD.4California Legislative Information. California Government Code 12960 You can file that intake form online through CRD’s California Civil Rights System. A CRD representative then conducts an intake interview to evaluate jurisdiction. If the department accepts the complaint, it prepares a formal complaint for your signature and sends it to the employer.5Civil Rights Department. Complaint Process

You do not have to use CRD’s investigation. You can request an immediate right-to-sue notice and file your own lawsuit. For employment claims, though, you must obtain that right-to-sue notice from CRD before going to court, even if you never intend to use the CRD investigation process.5Civil Rights Department. Complaint Process

FEHA remedies for a successful claim include back pay for lost wages, front pay for future earnings, reinstatement or hiring, out-of-pocket expenses, emotional distress damages, punitive damages, and attorney’s fees.6Civil Rights Department. Employment Remedies Unlike federal Title VII claims, FEHA does not cap compensatory or punitive damages. Section 12954 itself does not set a separate penalty schedule; it plugs into the FEHA framework, so an employer who fires someone over a urine test showing only non-psychoactive metabolites faces the same uncapped exposure as one who discriminated on the basis of race or gender.