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Proposition 64 made it legal for adults in California to grow and use recreational marijuana and other states passed similar laws. How will this affect your business?

Proposition 64 at a Glance

The passing of Proposition 64 could have an immediate effect on California businesses. To better understand the potential impact, it helps to know what this law does and does not do.

It does:

• Make it legal for adults (people who are 21 or older) to "possess, transport, purchase, consume and share up to one ounce of marijuana and eight grams of marijuana concentrates."
• Allow adults to grow marijuana plants in a "fully enclosed and secure" manner.
• Reduce or eliminate criminal penalties for some, but not all marijuana-based offenses.
• Make it legal to sell marijuana with a license (this may not happen until 2018).
• Establish a 15% excise tax on marijuana sales.

It does not:

• Allow for public marijuana usage.
• Make it legal to drive while under the influence of marijuana.
• Authorize everyone to grow and sell marijuana - sellers must apply for and receive a license from the state.

Thousands of People Could Enter the Job Market

Proposition 64 did more than legalize certain aspects of recreational marijuana. It also retroactively de-criminalized possession, use and transportation for people who are at least 21. This could have a major impact on three groups.

• People who have open charges for possession, cultivation or transportation of marijuana may have their cases dismissed.
• People who are currently in prison for marijuana-related charges can petition to have their sentence reduced or canceled.
• People who served time for marijuana-related activities that are no longer crimes may petition to have those records expunged.

Thousands of California residents have been convicted of misdemeanors and felonies for growing, carrying or selling marijuana. The passing of Prop 64 means some of those activities are no longer crimes. The "Golden State" could have a large number of people re-entering the job market in the near future.

Some Criminal Records Will Become Irrelevant

When someone has a criminal record expunged, it cannot be used for employment or other screening purposes. It is imperative for employers to only review records that are up-to-date and accurate. At Backgrounds Online, we provide current, reportable information that can legally be used to make hiring decisions.

Regardless of whether or not someone who was once charged with a marijuana-based offense has that record annulled, the charge might not be valid for employment screening purposes. Therefore, such criminal charges should not be used to make hiring decisions. We recommend that California employers consult with their HR or legal team to discuss how to proceed.

Will Other States Adopt Similar Propositions?

California was not the only state to pass new regulations regarding the use of medical marijuana. Similar laws were passed in Nevada and Massachusetts.

There is no way to know if other states will do the same, but it is a possibility. This is something employers throughout the country should be aware of and watch out for. Our staff endeavors to keep up with laws that impact employment screening procedures. Follow our blog for news on this and other important topics that could affect your business.

Update Your Background Screening Policies

Every company should maintain written employment screening policies. These documents should be reviewed periodically and updated as needed.

This is a good time for California employers to update their internal documentation and consider the changes they will face from Prop 64. We suggest including information about the types of records you are looking for when running a background check and what steps will be taken if those records are found. Use this documentation to help keep your business compliant and consistent during future hiring campaigns.