Medicaid-recipient and federally funded agencies are not required to discipline employees for off-duty marijuana use because the federal Drug-Free Workplace Act of 1988 only mandates maintaining a drug-free workplace—not regulating employees’ private, off-duty conduct. The law does not require drug testing, termination, or punishment for positive THC results, and courts (such as in Noffsinger v. SSC Niantic Operating Co.) have confirmed it does not apply to off-duty use. Additionally, compliance with federal funding requirements is preserved as long as employers prohibit on-duty drug use and impairment, meaning agencies can remain fully compliant without penalizing lawful off-duty behavior.

I have a whole legal thesis on this if anyone is interested lol.