Colorado Becomes Tenth State to Pass Social Media Password Protection Legislation

 By Philip L. Gordon, Katherine (Katie) Dix, and Jordan Cornett

The number of states enacting social media password protection laws has risen once again, as such legislation continues to gain traction across the country.  On May 1, 2013, Colorado’s General Assembly became the ninth legislature to submit a bill to its governor restricting an employer’s ability to access the personal social media accounts of employees and applicants.  The other states are Arkansas, California, Illinois, Maryland, Michigan, New Jersey, New Mexico, Utah and Washington.  Compared to several of the more recent social media protection laws, such as New Jersey’s A.B. 2878, Colorado’s bill is relatively weak.

Colorado’s bill, H.B. 13-1046, prohibits an employer from engaging in three activities.  First, an employer cannot “suggest, request, or require” an employee or applicant to disclose “any user name, password, or other means for accessing the employee’s or applicant’s personal account or service through the employee’s or applicant’s personal electronic communications device.”  Second, H.B. 13-1046 prohibits an employer from compelling an employee or applicant to add anyone, including the employer or its agent, to the employee’s or applicant’s list of contacts associated with a social media account.  Third, under the bill, an employer cannot cause an employee or applicant to change the privacy settings associated with a social networking account.  An employer, for example, cannot coerce an applicant into making his Facebook page public, which would allow the employer to see his relationship status or posts. 

The Colorado bill contains the same two exceptions as Maryland’s User Name and Password Privacy Protection Act, H.B. 13-1046.  Specifically, the bill appears to allow an employer to request an employee’s log-in information to investigate suspected violations of securities laws or regulations, or suspected misappropriation of trade secrets when the employer suspects the misconduct involves the employee’s personal social media account.  H.B. 13-1046 does not contain a more generalized exception for an investigation into suspected unlawful conduct or violations of employer policies. 

The Colorado bill has one of the weaker remedial schemes as compared to other recent laws.  H.B. 13-1046 does not confer a private right of action on applicants or employees to recover unlimited compensatory and consequential damages.  Instead, the bill allows an employee or applicant to file a complaint with Colorado's Department of Labor (DOL).  The DOL must investigate the complaint, hold a hearing, and issue findings.  The DOL may promulgate rules authorizing a fine of up to $1,000 for the first offense and up to $5,000 for each subsequent offense.


Colorado Enacts Law Restricting the Use of Credit Reports for Employment Purposes

On April 19, 2013, Colorado Governor John W. Hickenlooper signed into law Senate Bill 13-018 (the "Employment Opportunity Act"), which will significantly restrict the ability of Colorado employers to use “consumer credit information” for hiring and other employment purposes unless use of the information is limited to the narrow category of positions set forth in the statute. With this law, Colorado becomes the ninth state to regulate the use of credit-related information for employment purposes, following laws enacted in California, Connecticut, Hawaii, Illinois, Maryland, Oregon, Vermont and Washington. Colorado’s law goes into effect July 1, 2013. To learn more about the law, please see Littler’s ASAP, Colorado is the Latest and Ninth State to Enact Legislation Restricting the Use of Credit Reports for Employment Purposes, by Rod Fliegel, Philip Gordon, and Jennifer Mora.

Colorado's Marijuana "Legalization" Amendment Task Force OKs Recommendation to Permit Employers to Terminate Employees for Off-Duty Marijuana Use

By Chris Leh

On February 5, 2013, a task force convened by Colorado’s governor to address issues arising out of Amendment 64, a state constitutional amendment that purports to legalize the recreational use of marijuana by adults in Colorado, recommended that “employers may maintain, create new, or modify existing policies in response to the passage” of the law. The recommendation is a preliminary signal that even as the state liberalizes its marijuana laws concerning medical and recreational use, employers still may regulate all marijuana use, even off-duty and off-premises use, by their employees.

In 2000, Colorado voters approved Amendment 20, which created a legal framework regarding medical marijuana. The law did not purport to legalize the drug. But those who suffered from “debilitating medical conditions” and whose physicians stated that they “might benefit from the medical use of marijuana” could obtain state registry cards that permit them to possess, grow, and use small amounts of the drug for medicinal purposes. Amendment 20 immunized users and their caregivers from prosecution for minor state law marijuana crimes. It contained a single brief reference to employment issues: “Nothing in this section shall require any employer to accommodate the medical use of marijuana in any work place.” During the 12 years since Amendment 20’s passage, Colorado employers have continued to create and enforce zero-tolerance policies and discipline employees for testing positive for marijuana, whether they were medical marijuana patients or not. With the exception of a case in which the drug test of a medical marijuana patient failed to pass statutory muster to support disqualification for unemployment benefits, the Colorado Court of Appeals has supported this approach.

On November 6, 2012 (as we have discussed here and here), voters in Colorado and Washington approved ballot measures purporting to legalize the distribution, possession, and use of small amounts of marijuana for recreational purposes. Colorado’s Amendment 64 expressly reiterated that it does not “require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale or growing of marijuana in the workplace." But it provides additional protections for employers. For example, Amendment 64 acknowledges the right of employers and others who occupy, own, or control a property to prohibit the use, possession, and transfer of marijuana there. Amendment 64 affirms prohibitions on driving while impaired by, or under the influence of, marijuana. Most importantly, however, the measure disclaims any intent to "affect the ability of employers to have policies restricting the use of marijuana by employees."

One crucial issue for Colorado employers is the effect of Amendment 64 on their ability to continue to enforce their policies prohibiting marijuana use by employees. With some exceptions, Colorado’s so-called “Lifestyle Discrimination Statute” prohibits employers from discharging employees for engaging in lawful, off-premises activities during non-working hours. The prevailing view among Colorado employers is that because the possession and use of marijuana for any purpose is illegal under federal law, an employee’s possession or use of marijuana off-site and off-duty does not fall within the scope of the law. Consequently, termination for a positive drug test is legal.

Although there is no controlling case law on the issue, Colorado courts have provided some indirect guidance. In 2011, for example, in Beinor v. Industrial Claims Appeals Board, the Colorado Court of Appeals, in a 2-1 decision, held that an employee terminated for testing positive for marijuana in violation of a zero-tolerance policy may be denied unemployment compensation even if the worker’s use of marijuana is considered “medical use” under state law, and even in the absence of the worker’s impairment. Notably, the court reserved the question of whether Amendment 20 prohibited an employer from discharging an employee for using medical marijuana. A vigorous dissent argued that Amendment 20 did not “encompass the presence of marijuana in one’s blood after the lawful use of medical marijuana at home.”

On December 10, 2012, Colorado Governor John Hickenlooper signed an executive order creating the Task Force on the Implementation of Amendment 64. The task force’s mission is “to identify the legal, policy and procedural issues that need to be resolved, and to offer suggestions and proposals for legislative, regulatory and executive actions that need to be taken, for the effective and efficient implementation” of the Amendment. Comprised of 24 state legislators, executive agency officials, and other stakeholders, the task force is addressing various issues, including the “impact of Amendment 64 on employers and employees and the Colorado economy.” The task force soon will report its recommendations to the governor, the state legislature, and the state attorney general.

On February 5, 2013, the task force considered a recommendation concerning Amendment 64’s impact on employers and employees:

The plain language of Amendment 64 Section 6(a) makes it clear that the intent of the voters was to maintain the status quo for employers and employees, and that employers may maintain, create new, or modify existing policies in response to the passage of the measure. The Amendment 64 Implementation Task Force recommends that employers should be encouraged to review current drug free workplace policies, including but not limited to hiring, sanctioning, termination and drug testing, in response to passage of the measure.

As expected, employee advocates argued that Amendment 64 changed the status quo to give off-the-job pot use the same kind of protection as alcohol use. They also contended that, although employers could restrict marijuana use by employees, they could not prohibit it. On a majority vote, however, the task force accepted the recommendation.
Although the task force’s recommendation lacks the force of law, its implications for employers are important:

  • Under Amendment 64, the rights of a person to use and possess small amounts of marijuana for recreational purposes do not trump the rights the amendment reserves to employers to restrict possession and use by its employees, whether that use is on-duty or off-duty, whether it is for medical or recreational purposes.
  • Employers should review and update their drug policies to ensure that employees understand that they apply to the use of all drugs that are illegal under state or federal law, including marijuana.
  • Employee advocates in Colorado are likely to mount legal challenges on behalf of employees terminated for testing positive for marijuana they used while outside the workplace and during non-working hours. 
  • Employers in others states seeking to enact liberalized marijuana laws should work vigilantly to ensure that those measures include strong, clear protections so they will be able to maintain, change, and enforce their drug-free workplace, zero-tolerance, random drug testing, and related policies.

The recommendation augurs well for employers as the debate over the liberalization of marijuana laws continues.

DOT Reiterates that Marijuana Use by Safety-Sensitive Transportation Employees Is Not Authorized, Regardless of Recent Passage of State Recreational Marijuana Use Laws

By Katie Goetzl

On December 3, 2012, the U.S. Department of Transportation's (DOT) Office of Drug and Alcohol Policy Compliance issued a Notice to address the recent passage of state initiatives purporting to legalize marijuana use for recreational purposes.

The DOT requires testing of applicants and employees in safety-sensitive transportation positions – such as pilots, truck drivers, train engineers, ship captains, school bus drivers, and pipeline emergency response personnel – for marijuana, cocaine, opiates, amphetamines, and phencyclidine (PCP). Applicants must be drug tested before they begin performing DOT-covered safety-sensitive duties, and employees must be drug tested in certain circumstances, including following an accident, randomly, and when reasonable suspicion of drug use exists. All confirmed positive drug tests are reviewed by a medical review officer (MRO). During that review process, the test subject is permitted to provide the MRO with information that would explain the positive test result, such as a prescription. If the test subject provides a legitimate medical explanation for the confirmed positive test result, then the MRO will report the test result to the (prospective) employer as verified negative. If the test subject does not provide a legitimate medical explanation, he or she must be removed from safety-sensitive duties and referred to a substance abuse professional for evaluation.

After the passage of medical marijuana laws by several states, the DOT took the position that an MRO may not report a confirmed positive test for marijuana as verified negative based on information that a physician recommended that the test subject use marijuana to alleviate the symptoms of a debilitating medical condition. In October 2009, the DOT's Office of Drug and Alcohol Policy Compliance issued a Notice stating that it “want[ed] to make it perfectly clear” that its drug and alcohol testing regulations “do[] not authorize ‘medical marijuana’ under a state law to be a valid medical explanation for a transportation employee’s positive drug test result.” The DOT emphasized that “marijuana remains a drug listed in Schedule I of the Controlled Substances Act” and that it “remains unacceptable for any safety-sensitive employee subject to drug testing under the [DOT’s] drug testing regulations to use marijuana.”

Not surprisingly, the DOT has responded similarly to the passage by Colorado and Washington of laws purporting to legalize marijuana use for recreational purposes. On December 3, 2012, the DOT's Office of Drug and Alcohol Policy Compliance issued a Notice stating that it “want[ed] to make it perfectly clear that the state initiatives will have no bearing on the [DOT’s] regulated drug testing program . . . [which] does not authorize the use of Schedule I drugs, including marijuana, for any reason. Therefore, [MROs] will not verify a drug test as negative based upon learning that the employee used ‘recreational marijuana’ when states have passed ‘recreational marijuana’ initiatives.” The DOT also took the opportunity to reiterate its position regarding medical marijuana use.

The bottom line is that applicants for and employees in safety-sensitive transportation positions will not be allowed to explain away a confirmed positive test for marijuana based on recreational or medical use purportedly authorized by state law.

Marijuana Laws Liberalized in Colorado, Washington, But Effect on Workplace Policies Likely Small

The 2012 elections placed a number of marijuana initiatives before state voters around the United States, ranging from efforts to legalize the sale and use of marijuana for recreational purposes to further expansion of the "medical marijuana" laws that currently exist in 17 states and the District of Columbia. Voters in Colorado and Washington passed initiatives directing their states to decriminalize the possession of marijuana by adults for recreational use. Oregon voters, in contrast, rejected a ballot initiative that would have legalized marijuana for recreational use. Massachusetts has adopted a "medical marijuana" law that decriminalizes the use and possession of marijuana by state residents with debilitating medical conditions. Montana voters appear to have authorized amendments to that state's existing medical marijuana law that narrow who is eligible to use marijuana for medical reasons. To learn more, please see Littler's ASAP, Marijuana Laws Liberalized in Colorado, Washington – But Effect on Workplace Policies Likely Small, by Nancy Delogu and Chris Leh.