In a recent landmark decision, the U.S. Supreme Court ruled in favor of a former commercial truck driver who was fired after failing a drug test—allegedly triggered by a CBD product he believed contained no THC. The ruling could significantly impact how employment disputes involving CBD and marijuana derivatives are handled, including right here in Texas.
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The Case at a Glance
Douglas Horn, the trucker at the center of the case, used a product called Dixie X to manage chronic pain from a serious injury. The product was marketed as CBD-rich and THC-free. However, after Horn failed a drug test and lost his job, he discovered that the product had indeed caused the positive test result. In response, he filed a lawsuit under the Racketeer Influenced and Corrupt Organizations Act (RICO)—a federal law originally designed to combat organized crime.
Horn alleged that the CBD product manufacturers, including Medical Marijuana, Inc., engaged in fraud by falsely advertising the product as THC-free. His case was initially dismissed, but later reinstated by the U.S. Court of Appeals. This week, the Supreme Court upheld that decision in a narrow 5-4 ruling, allowing Horn’s case to proceed in the lower courts.
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Why This Matters for Texans
While this case originated in New York, the implications are far-reaching—and very relevant to both employees and employers in Texas.
CBD products are widely available throughout the state, thanks to the 2019 Texas law legalizing hemp-derived CBD with less than 0.3% THC. However, the regulation of these products is still evolving, and labeling inaccuracies are not uncommon. This can lead to situations where law-abiding Texans unknowingly test positive for THC and face serious consequences, including job loss.
This Supreme Court ruling sets the stage for injured employees in Texas to potentially sue manufacturers under civil RICO laws if they can prove that they were misled and suffered economic harm as a result—such as the loss of employment.
Employment Loss as a “Business Injury”
One of the central questions in the case was whether losing a job due to a failed drug test constitutes a “business or property” injury under the RICO Act. Writing for the majority, Justice Amy Coney Barrett affirmed that it does.
Justice Elena Kagan echoed this reasoning during oral arguments, stating that “if you’re harmed when you lose a job, then you’ve been injured in your business.” This interpretation opens the door for more workers to seek compensation under RICO for fraudulent practices that lead to employment-related harm.
What Texas Employers Should Know
Texas employers—especially those with zero-tolerance drug policies—should take note of this decision. As CBD use becomes more common and legal standards evolve, it’s essential to:
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Review drug testing policies, especially regarding THC thresholds.
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Educate employees on the risks of using unregulated CBD products.
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Monitor product claims closely if offering CBD-related wellness initiatives.
Failing to do so may result in wrongful termination lawsuits or even RICO-based civil suits if a worker can demonstrate that misleading product labeling led to economic harm.
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Know Your Rights
At Zendeh Del & Associates, PLLC, we understand the complexities of employment law, CBD legality, and federal RICO implications. If you or a loved one in Texas has lost a job due to a failed drug test linked to CBD—or if you’re a business facing such claims—we’re here to help.
Our team is experienced in navigating both state and federal legal systems, and we can advise you on your rights, responsibilities, and legal options moving forward.
Contact us today for a consultation and let us help you protect your career, your business, and your future.
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