Indiana.

Information provided is current as of January 7, 2026, and companies are encouraged to consult with legal counsel on these types of complex matters.

Indiana - State Specific Information

Current Legal Status of Cannabis in Indiana

Indiana takes a firm stance against cannabis use in all forms. Understanding the legal landscape is essential for employers developing workplace policies.

Medical Cannabis

Indiana has not legalized medical marijuana. The state permits only low-THC CBD oil containing less than 0.3% THC, which falls under federal hemp regulations rather than medical cannabis programs. Unlike neighboring states such as Illinois and Michigan, Indiana residents have no legal pathway to obtain medical marijuana cards or access cannabis for therapeutic purposes.

Recreational Cannabis

Recreational marijuana use remains completely illegal in Indiana. Marijuana is classified as a Schedule I controlled substance under Indiana Code § 35-48-4-11, placing it in the same category as heroin and other substances deemed to have no accepted medical use.

Criminal Penalties for Possession

The penalties for marijuana possession in Indiana include:

• Any amount (first offense): Class B misdemeanor, punishable by up to 180 days in jail
• More than 30 grams with prior conviction: Level 6 felony, carrying more severe consequences

These strict penalties reinforce Indiana's zero-tolerance approach to cannabis and provide legal backing for employers who choose to maintain drug-free workplace policies.

Senate Bill 250: Closing the Delta-8 Loophole

A significant development in 2026 involves Senate Bill 250, which addresses what has become known as the "Farm Bill loophole." This legislation aims to align Indiana state law with new federal restrictions on hemp-derived intoxicating products.

Key Provisions of Senate Bill 250

The bill targets Delta-8 THC and other synthetic cannabinoids that have proliferated in gas stations, convenience stores, and smoke shops throughout Indiana. Key elements include:

• Banning the sale of Delta-8 THC and similar intoxicating synthetic cannabinoids
• Capping total THC content at 0.4mg per container, effectively eliminating most intoxicating hemp products from the legal market
• Bringing Indiana into compliance with evolving federal hemp regulations

For employers, this legislation may reduce the prevalence of legally-purchased intoxicating products that can cause positive drug tests, though enforcement timelines and implementation details should be monitored.

State Regulatory Oversight

The Indiana Alcohol and Tobacco Commission (ATC) has been designated as the regulatory body overseeing the permitting and regulation of Indiana's remaining low-THC hemp-derived product market. This agency will play a central role in implementing Senate Bill 250's restrictions and ensuring compliance among retailers.

Currently, the state has not specified any particular forms or registration requirements for employers regarding drug testing programs.

Employer Drug Testing Rights in Indiana

Indiana provides employers with extensive latitude when it comes to workplace drug testing, making it one of the most employer-friendly states in the nation for maintaining drug-free workplaces.

Employment-at-Will Doctrine

Indiana is a strict employment-at-will state with no statutes restricting private employers from implementing drug testing programs. This means employers can:

• Conduct pre-employment drug screening as a condition of hire
• Implement random drug testing programs for current employees
• Require post-accident testing following workplace incidents
• Test based on reasonable suspicion of impairment

No Accommodation Requirements

Since Indiana has no medical marijuana program, employers face no legal obligation to accommodate any form of THC use. This stands in stark contrast to states with medical cannabis programs, where employers may need to engage in interactive processes or consider reasonable accommodations.

In Indiana, a positive drug test for THC provides clear legal grounds for:

• Refusal to hire job applicants
• Termination of current employees
• Disciplinary action according to company policy

Documentation Best Practices

While Indiana law favors employers, establishing robust documentation remains a critical risk mitigation strategy. Employers should:

• Maintain written drug testing policies that are clearly communicated to all employees
• Document the timing and circumstances of all drug tests
• Keep records of policy acknowledgments signed by employees
• Ensure consistent application of testing protocols across the workforce

Safety-Sensitive Position Designations

Indiana does not provide a strict statutory definition of "safety-sensitive" roles for private employers, granting companies significant flexibility in designing their drug testing programs.

Private Employer Flexibility

Private employers in Indiana can designate safety-sensitive positions at their own discretion. This allows companies to implement enhanced testing protocols for roles involving:

• Operation of heavy machinery or vehicles
• Handling of hazardous materials
• Work at heights or in confined spaces
• Security or public safety responsibilities
• Healthcare or patient care
• Childcare or supervision of vulnerable populations

State Employee Regulations

For state government employees, the regulatory framework is more structured. Testing Designated Positions (TDP) are strictly regulated and subject to mandatory random testing requirements. Private employers may look to these state guidelines as a model for developing their own safety-sensitive position classifications.

Privacy and Anti-Discrimination Protections

While Indiana grants broad drug testing authority to employers, certain protections remain in place to ensure fair treatment of employees and applicants.

Indiana Fair Employment Act Requirements

The Indiana Fair Employment Act mandates that drug testing programs not be conducted in a discriminatory manner. Employers must ensure:

• Testing policies are applied consistently across protected classes
• Selection for random testing uses truly random methodology
• Reasonable suspicion standards are objective and documented
• Testing requirements don't disproportionately impact protected groups

Confidentiality of Results

Drug test results are generally treated as confidential medical records under Indiana law. Employers should:

• Store test results separately from general personnel files
• Limit access to results on a need-to-know basis
• Follow proper protocols when sharing results with Medical Review Officers
• Maintain appropriate retention and destruction schedules

Practical Recommendations for Indiana Employers

Given Indiana's clear legal framework, employers should take advantage of the regulatory clarity while implementing best practices:

Policy Development

1. Create comprehensive written policies that outline all testing circumstances, consequences, and employee rights
2. Define safety-sensitive positions clearly within your organization
3. Establish consistent procedures for all types of testing
4. Include provisions addressing hemp-derived products that may cause positive results

Implementation Strategies

1. Partner with certified testing laboratories to ensure defensible results
2. Train supervisors on reasonable suspicion indicators and documentation
3. Communicate policies clearly during onboarding and through regular reminders
4. Review policies annually to incorporate any legislative changes

Staying Current

Employers should monitor the implementation of Senate Bill 250 and any future legislative developments. Consulting with legal counsel remains advisable for complex situations, despite Indiana's relatively straightforward regulatory environment.

Conclusion

Indiana's strict stance on cannabis creates a clear pathway for employers seeking to maintain drug-free workplaces. With no medical marijuana program and comprehensive employer testing rights, companies operating in Indiana face fewer compliance complexities than those in neighboring states with legal cannabis markets.

However, the evolving landscape of hemp-derived products and ongoing legislative attention to the Delta-8 loophole demonstrate that even in prohibition states, cannabis-related employment issues require ongoing attention. By maintaining well-documented policies, ensuring non-discriminatory application, and staying informed of regulatory changes, Indiana employers can confidently navigate workplace drug testing while protecting their organizations and employees.