Menu Close

California 2024 New Cannabis Laws and Compliance Guidelines: Understanding the Implications of AB 2188 and SB 700

In the rapidly evolving legal landscape of employment law, California stands on the brink of implementing pivotal cannabis-related legislation. These new laws, slated to take effect on January 1, 2024, are set to bring substantial changes to workplace policies and employee rights across the state. For employers, understanding and adapting to these changes is not just advisable but imperative. This comprehensive guide aims to dissect these laws, offering in-depth insights and actionable steps for California employers to navigate this new legal terrain effectively.

Understanding the Implications of AB 2188 and SB 700

The two new laws in question are AB 2188 and SB 700. These laws collectively introduce significant protections for employees regarding cannabis use, particularly outside of work hours, and impose restrictions on employers regarding inquiries into past cannabis use. Understanding the nuances of these laws is the first step in ensuring compliance.

Enhanced Employee Protections for Off-Duty Cannabis Use

Expansion of FEHA’s Anti-Discrimination Provisions: The California Fair Employment and Housing Act (FEHA) has long been a bulwark against employment discrimination, safeguarding employees and potential hires from unfair treatment based on protected characteristics like race, religion, and gender. AB 2188 extends these protections to cover employees’ and applicants’ use of cannabis outside of work. This expansion marks a significant shift in employment law, acknowledging the growing societal acceptance of cannabis and the need to protect employees’ privacy and personal choices.

The Core of AB 2188: Under this new framework, employers are restricted from taking adverse employment actions (such as demotion, refusal to hire, or termination) if the basis for such actions is an employee’s off-the-job cannabis use. This provision, however, does not impinge upon an employer’s right to enforce drug-free workplace policies.

Privacy Protections in SB 700: Complementing AB 2188, SB 700 fortifies employee privacy by making it unlawful for employers to inquire about or request information regarding a job applicant’s history with cannabis. This law recognizes the potential for past cannabis use to unfairly impact hiring decisions.

Drug Testing and Impairment Assessment

Redefining Drug Testing Standards: A critical aspect of AB 2188 relates to drug testing in the workplace. The law emphasizes the distinction between active impairment and the mere presence of cannabis metabolites in the body:

  • THC vs. Metabolites: THC (Tetrahydrocannabinol) is the psychoactive component in cannabis responsible for impairment. Post-metabolism, THC is stored as nonpsychoactive metabolites, which do not indicate current impairment but rather past usage.
  • Shifting Testing Focus: The new legislation requires employers to adopt testing procedures that identify active THC impairment rather than relying on tests for nonpsychoactive metabolites, which do not correlate with current job performance or safety concerns.

Employer Rights and Obligations Under the New Legal Framework

Maintaining a Drug-Free Workplace

While AB 2188 offers protections for off-duty cannabis use, it does not diminish an employer’s right to enforce a drug-free workplace policy. This means employers can still take action against employees or applicants who are actively impaired at work or who bring cannabis onto the workplace premises.

Exceptions to the Rule

Notably, AB 2188 includes specific exceptions:

  • Exclusion of Certain Trades: The law does not apply to employees in the building and construction trades, acknowledging the unique safety concerns in these industries.
  • Federal Background Checks and Security Clearances: Employees required to undergo federal background investigations or security clearances are exempt from these protections.
  • Compliance with State and Federal Laws: The new legislation does not supersede existing state or federal laws that mandate controlled substance testing for certain job roles.

Preparing for Compliance: A Step-by-Step Guide for Employers

With the implementation date looming, employers must take proactive steps to ensure compliance. This preparation involves a thorough review and, if necessary, a revision of existing policies and practices.

  1. Policy Review and Update:
    • Employers should closely examine their current drug and alcohol policies, ensuring they align with AB 2188’s requirements.
    • Policies should clearly differentiate between permissible off-duty cannabis use and unacceptable on-the-job impairment.
    • Testing procedures should be updated to focus on detecting active THC impairment.
  2. Addressing Exceptions:
    • If any of the law’s exceptions apply to specific employee groups, policies should reflect these distinctions.
  3. Application and Hiring Materials:
    • Employers must revise job applications and other hiring materials to remove any inquiries about past cannabis use, aligning with SB 700’s stipulations.


The upcoming changes in California’s employment laws regarding cannabis use represent a significant shift in the balance of employee privacy rights and employer obligations. By understanding these changes and preparing accordingly, employers can ensure not only legal compliance but also the cultivation of a fair and progressive work environment. As societal attitudes toward cannabis continue to evolve, staying abreast of legal developments and adapting workplace policies will be essential for any forward-thinking employer in California.


Getting Legal Help

AXIS Legal Counsel’s Business and Corporations Practice provides legal advice to numerous businesses with a wide range of business matters. Axis  represent small, medium-sized, and large business clients with a wide variety of business and corporate law matters. We represent early-stage companies as well as established businesses on a wide variety of business law matters, ranging from contracts and transactions, intellectual property, labor/employment law, business financing, mergers and acquisitions, real estate, insurance, business succession planning, and general advice and counsel.  For information on retaining AXIS Legal Counsel to represent your business in connection with any legal matter, contact [email protected]  for a confidential consultation.

Our Business, Corporate Law and Securities Practice Areas

  • Corporate Law
  • Small Business
  • Contracts & Agreements
  • Labor & Employment
  • Intellectual Property
  • Securities Law
  • Shareholders
  • Directors and Officers
  • Mergers & Acquisitions
  • Business Sales
  • Cryptocurrencies
  • Securities Law
  • Securities Offerings
  • PPMs
  • LPs, LLCs, and Corporations
  • Real Estate Investment Trusts
  • Investor Pools
  • Angel Investments & Private Equity
  • Leveraged Financings
  • Debts and Debt Notes
  • Convertible Notes
  • Regulation D, A, CF, and S Offerings


► Read our Business FAQs


Our FAQs answer the most common issues faced by startups and  businesses.

We have an extensive FAQ Library that covers the most common questions we get from businesses, as well as FAQs on recent changes in  law affecting businesses .

Visit our Entire FAQ Library

 Learn About Our Recent Projects


Have we counseled businesses like yours? All the time.

We have represented a variety of business clients in numerous industries across multiple disciplines and practice matters. Here are some of the highlights:



Our talented legal counsel has been quoted in a number of press outlets, including the following:


► Serving Clients Nationwide and in 22+ Countries Internationally

We represent clients throughout the U.S. and in 22+ countries internationally.