Federal Appeals Court Denies Workers’ Compensation Claim for Cannabis Edibles

A construction worker who was permanently disabled on the job has been denied workers’ compensation coverage for cannabis-infused edibles prescribed by his doctor.

The Second Circuit Court of Appeals has upheld the denial on the grounds that marijuana’s classification as a Schedule I substance under the Controlled Substances Act (CSA) means that the edibles have “no accepted medical use” under the Longshore and Harbor Workers’ Compensation Act (LHWCA).

Federal law “categorically bars marijuana from being deemed a reasonable and necessary medical expense for purposes of the LHWCA,” the Second Circuit court ruled.

Luis Peña Garcia, a resident of Puerto Rico, sustained work-related injuries to his neck, back, and upper and lower extremities in May 1994, resulting in permanent total disability. In 1998, the Department of Labor (DOL) found that Peña’s former employer and its insurance carrier were required to provide him with medical care and treatment for his injury under the LHWCA, which Congress extended to territories including Puerto Rico with the Defense Base Act. The law requires reimbursement of “all reasonable and necessary medical expenses” for eligible work-related injuries.

In keeping with Puerto Rico’s regulations allowing physician-recommended medical marijuana, a doctor licensed in Puerto Rico recommended “edibles such as cookies infused with specific dosage of medical cannabis” as treatment for Peña’s chronic pain. “This seems to be one of the only treatments that best works for [Peña] at night time due to its absorption and dose doubling effect,” the doctor explained.

When Peña sought reimbursement for the cannabis-infused products, his request was denied by his employer’s insurer. He appealed the denial to a DOL administrative law judge (ALJ). But the ALJ ruled that marijuana’s classification as a Schedule I substance under the CSA necessarily entailed that the drug had no accepted medical use under federal law. Consequently, the ALJ concluded, marijuana could not be a “reasonable and necessary medical treatment” under the LHWCA, and Peña’s employer and insurance carrier were not obligated to reimburse him for his cannabis-infused edibles.

In his appeal, Peña argued that medical marijuana is a reasonable and necessary treatment for pain management and that he was thus entitled to reimbursement for the drug under the LHWCA. However, the federal appeals court noted that while the LHWCA requires reimbursement of “all reasonable and necessary medical expenses” for eligible work-related injuries, the Controlled Substances Act (CSA) makes it “unlawful knowingly to manufacture, distribute, or possess with intent to distribute controlled substances.”

The appeals court found Peña’s argument is foreclosed by the plain text of the CSA and as such, Schedule I substances like marijuana, have “no currently accepted medical use in treatment in the United States.”

The appeal was heard in the Second Circuit because the DOL’s office in New York adjudicated Peña’s claim.

Topics Workers' Compensation Talent Cannabis