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Cannabis businesses face unique risks and challenges, and insurance slowly gaining its footing on how to properly insure this budding industry.

Case Study

Does workers' compensation have to reimburse for medical marijuana?

A court case questions whether an employer should reimburse an employee for the prescribed use of medical marijuana after a work-related accident.

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The appellate court found that "there is evidence of tolerance from the federal government of state-legislated medical marijuana" and that since December 2014, "congressional appropriations riders have prohibited the use of any (Department of Justice) funds that prevent states with medical marijuana programs. . . from implementing state medical marijuana laws." (Credit: PRO Stock Professional/Shutterstock) The appellate court found that “there is evidence of tolerance from the federal government of state-legislated medical marijuana” and that since December 2014, “congressional appropriations riders have prohibited the use of any (Department of Justice) funds that prevent states with medical marijuana programs. . . from implementing state medical marijuana laws.” (Credit: PRO Stock Professional/Shutterstock)

In a case of first impression, the Superior Court of New Jersey, Appellate Division, considered whether a workers’ compensation judge can order an employer to reimburse an employee for the employee’s use of medical marijuana prescribed for chronic pain following a work-related accident.

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