February 2017

When Massachusetts voters legalized the use of marijuana for medicinal purposes four years ago, the impact on most employers was limited to clarifying that “legal” marijuana use was still generally prohibited in the workplace. Now, Massachusetts has legalized limited use of recreational marijuana. Although the recreational marijuana use law also provides that employers may prohibit employees from reporting to work or performing work under the influence of marijuana, the new law is raising practical challenges for employers. Here are three ways that employers may consider changing what they have been doing:

1. Pre-employment Drug Testing

Many employers require job candidates to successfully pass a drug test as a condition to receiving a job offer. Prior to the legalization of marijuana, a positive test for marijuana use by a job candidate was an indication of illegal drug use and clear grounds for rescinding an offer of employment. Since legalization of medical and recreational use, from a legal standpoint, rescinding a job offer based on testing positive for marijuana use is still generally permitted. From a practical standpoint, however, the rationale that marijuana use is illegal no longer exists and brings into question the rationale for drug testing for marijuana at … Keep reading

When entering into a new venture, it is not uncommon for a new legal entity to be formed in order to insulate an existing company from the liabilities associated with the new business. While the law absolutely permits this, a recent case in the Bankruptcy Court, In Re Cameron Construction & Roofing, is a good reminder that achieving true insulation requires more than simply filing another set of Articles of Incorporation.In 2000, Cameron Construction & Roofing, Inc. (“Inc.”) was formed by Wilfred Cameron, who was the corporation’s President, Treasurer, Clerk and sole Director. Two years later, Mr. Cameron formed Cameron Construction LLC (“LLC”), and he was named its Managing Member. Further, Mr. Cameron owned 99.9% of the equity in LLC, with the remaining 0.1% being held by Inc.By 2014, Inc. had become insolvent, and it filed a Chapter 7 Bankruptcy Petition. A Trustee was appointed to marshal and distribute Inc.’s assets, and LLC was joined as a defendant in the bankruptcy proceeding. Specifically, the Trustee sought to have the Court rule that assets of LLC could be used to satisfy the debts of Inc. LLC objected to this, arguing, that it was undisputed that the two … Keep reading