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

Tennessee maintains some of the strictest cannabis laws in the United States, making it essential for employers and residents to understand the current legal landscape. As of January 2026, both medical and recreational marijuana remain largely prohibited, with only limited exceptions for high-CBD products. This comprehensive guide breaks down everything you need to know about Tennessee's cannabis regulations, recent legislative changes, and employer drug testing requirements.
Unlike many states that have embraced cannabis reform, Tennessee continues to classify marijuana as a Schedule I controlled substance. This classification places cannabis alongside drugs considered to have high potential for abuse and no accepted medical use under state law.
Tennessee does not have a comprehensive medical marijuana program. The state offers extremely limited protections for patients who possess high-CBD/low-THC oil containing up to 0.9% THC. However, it's crucial to understand that these protections come with significant limitations:
Recreational marijuana use remains completely illegal in Tennessee. The penalties for possession are significant:
One of the most significant developments in Tennessee's cannabis-adjacent laws came through Public Chapter 526 (HB 1376), which represented a sweeping overhaul of hemp regulations. This legislation addressed growing concerns about intoxicating hemp-derived products that had proliferated throughout the state.
The legislation introduced several critical changes:
THCA Flower Ban: The sale of THCA flower is now prohibited. THCA (tetrahydrocannabinolic acid) converts to THC when heated, meaning these products could produce intoxicating effects similar to traditional marijuana.
Synthetic Cannabinoid Restrictions: The law bans synthetic cannabinoids, addressing concerns about laboratory-created compounds with unpredictable effects.
THC Caps: Most intoxicating hemp products are now strictly capped at 0.3% total THC, closing loopholes that previously allowed higher-potency products to be sold legally.
Regulatory Transfer: All hemp-derived cannabinoids—including popular products containing Delta-8 and Delta-10 THC—now fall under the jurisdiction of the Tennessee Alcoholic Beverage Commission (TABC).
The TABC now serves as the primary regulatory body for all hemp-derived cannabinoid products in Tennessee. This consolidation of oversight aims to provide more consistent enforcement and clearer guidelines for businesses operating in the hemp space.
Employers and businesses should note that as of the current reporting period, no specific state forms have been designated for hemp-related compliance matters. Companies involved in hemp product sales or distribution should consult directly with the TABC for the most current requirements.
Tennessee's employment laws provide significant latitude for employers regarding drug testing, making it one of the more employer-friendly states in this regard.
Tennessee operates under the employment-at-will doctrine, meaning employers can generally terminate employees for any reason not prohibited by law. This doctrine extends to drug testing policies, giving employers substantial authority over workplace substance regulations.
Under this act, employers maintain broad rights regarding drug testing:
Because all forms of marijuana remain illegal in Tennessee, employers may enforce strict zero-tolerance policies. A critical point for employees to understand: a positive test for THC is considered a violation of workplace policy, regardless of whether the employee claims the substance was "legal hemp."
This means that even if an employee consumed a product they believed to be legal under Tennessee's hemp laws, a positive THC result can still result in adverse employment action.
Experts emphasize that establishing robust documentation is a key risk mitigant for employers in Tennessee. This includes:
Under Tennessee Code Annotated § 50-9-101, employers participating in the state's voluntary Drug-Free Workplace Program face specific requirements regarding safety-sensitive positions.
Employers in this program must test employees in safety-sensitive roles, which typically include positions where impairment could result in:
While Tennessee law favors employer discretion in drug testing, certain employee protections exist:
Employers must provide a written drug testing policy before conducting tests. This policy should clearly outline:
Test results must remain confidential, with access limited to those with a legitimate need to know.
Employees who test positive face several potential consequences beyond termination:
Tennessee's cannabis laws remain among the most restrictive in the nation, and recent hemp legislation has further tightened regulations on THC-containing products. Employers and employees alike should stay informed about potential legislative changes and consult with legal professionals when navigating these complex regulatory waters.
Our team can help you understand state-specific requirements and develop a compliant impairment policy.
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