Fired After Taking CBD Oil? Supreme Court Allows Truck Driver to Sue for Lost Wages

Did you know that approximately 25% of adults in the U.S. have tried CBD? While CBD products are becoming increasingly popular for managing various health conditions, using them can lead to unexpected legal and employment issues. A recent Supreme Court decision highlights these challenges, particularly for safety-sensitive employees like truck drivers.

The Case: Douglas Horn vs. Medical Marijuana Inc.

Douglas Horn, a truck driver, experienced a life-altering event when he was fired after testing positive for THC, the psychoactive component in marijuana. Horn had been using a CBD product called Dixie X, which was advertised as containing 0% THC, to alleviate chronic pain from a 2012 accident. Despite the product’s claims, a drug test revealed the presence of THC in his system, leading to his termination.

Horn’s case didn’t center on cannabis laws but on the boundaries of the Racketeer Influenced and Corrupt Organizations (RICO) Act. He sued Medical Marijuana Inc., the manufacturer of Dixie X, alleging that the company falsely advertised its product, leading to his financial ruin. The central legal question was whether economic harms resulting from personal injuries qualify as injuries to “business or property” under civil RICO.

The Supreme Court’s Decision

On April 2, 2025, the Supreme Court ruled 5-4 in favor of Horn, stating that he could seek triple damages from the company under the RICO Act. The court’s majority, in an opinion written by Justice Amy Coney Barrett, held that a plaintiff can seek damages for business or property loss, even if the loss resulted from a personal injury. This decision allows Horn to proceed with his lawsuit, potentially setting a precedent for similar cases.

Understanding the Legal Landscape

The Racketeer Influenced and Corrupt Organizations (RICO) Act

The RICO Act, enacted in 1970, was initially designed to combat organized crime. It allows individuals harmed by a criminal enterprise to sue for triple damages. In Horn’s case, he argued that Medical Marijuana Inc. engaged in mail and wire fraud by falsely advertising their CBD product, causing him economic harm through job loss.

CBD and THC: A Tricky Combination

CBD (cannabidiol) is a non-psychoactive compound found in cannabis plants, while THC (tetrahydrocannabinol) is the psychoactive component responsible for the “high” associated with marijuana. Under the 2018 Farm Bill, hemp-derived products containing less than 0.3% THC are legal at the federal level. However, the Food and Drug Administration (FDA) does not regulate CBD products, leading to inconsistencies in labeling and THC content.

The Department of Transportation (DOT) and Drug Testing

The Department of Transportation (DOT) has strict regulations regarding drug use for safety-sensitive employees, including truck drivers, pilots, and school bus drivers. These regulations mandate testing for marijuana, not CBD. However, because many CBD products may contain undisclosed or higher-than-allowed levels of THC, using them can lead to a positive drug test and subsequent job loss. The DOT’s stance is clear: CBD use is not a legitimate medical explanation for a positive marijuana test.

Implications for Employees and Employers

For Employees

Be Cautious with CBD Products: Given the lack of regulation and potential for mislabeling, exercise caution when using CBD products.
Understand Employer Policies: Familiarize yourself with your employer’s drug-free workplace policies, especially regarding CBD use.
Consider Third-Party Testing: If you choose to use CBD, opt for products that have been third-party tested to verify their THC content.
Disclose CBD Use (with Caution): While not legally obligated, disclosing CBD use to your employer might be helpful, especially if recommended by a medical professional. However, be aware that this disclosure could also lead to scrutiny or adverse employment actions.

For Employers

Review and Update Drug-Free Workplace Policies: Clearly address CBD use in your policies, outlining the potential risks and consequences of a positive drug test.
Educate Employees: Inform employees about the potential for CBD products to contain undisclosed THC levels and the implications for drug testing.
Consult Legal Counsel: Before revising your drug policy or taking disciplinary action against an employee for CBD use, consult with an employment attorney to ensure compliance with applicable laws.
Consider Case-by-Case Evaluations: Evaluate positive drug tests on a case-by-case basis, especially if an employee claims CBD use.

Can You Sue If You’re Fired After Taking CBD Oil?

The Supreme Court’s decision in Horn v. Medical Marijuana Inc. suggests that you may have grounds to sue if you’re fired after taking CBD oil, particularly if the product was falsely advertised and led to a positive THC test. Potential legal avenues include:

RICO Act Claims: If the CBD manufacturer engaged in fraudulent activities, such as false advertising, you may be able to sue for triple damages under the RICO Act.
Fraudulent Inducement: You may have a claim for fraudulent inducement if you relied on the manufacturer’s false representations about the product’s THC content.
Americans with Disabilities Act (ADA): If you use CBD for a medical condition, you may argue that your employer failed to provide a reasonable accommodation for your disability. However, this argument may not be successful, as federal courts have generally held that employers are not required to accommodate medical marijuana use.

The Bottom Line

The intersection of CBD use, employment law, and drug testing regulations is complex and evolving. While CBD products may offer potential health benefits, using them can carry significant risks, especially for safety-sensitive employees. Both employees and employers need to stay informed about the legal landscape and take proactive steps to mitigate potential issues.

If you’ve been fired after taking CBD oil and testing positive for THC, it’s crucial to seek legal advice from an experienced employment attorney. They can assess your situation, explain your legal options, and help you pursue the compensation you deserve.