Earlier this year, Amazon was hit with a proposed class action that accused the company of violating a New York City law by testing applicants for jobs at local facilities for marijuana.
Amazon.com Inc. (NASDAQ:AMZN) said it supports the federal legalization of marijuana and will drop marijuana-testing requirements for some of its workers.
What Happened: Dave Clark, CEO of Amazon’s worldwide consumer division, said in a blog post that the e-commerce giant will actively support the Marijuana Opportunity Reinvestment and Expungement Act of 2021 (MORE Act), which will decriminalize marijuana at the federal level. The bill was reintroduced in Congress last Friday.
Amazon also said it will adjust its corporate drug testing policy for some workers. The company will no longer include marijuana in its comprehensive drug screening program for any positions not regulated by the Department of Transportation.
Instead, Amazon will continue to do impairment checks on the job and test for all drugs and alcohol after any incident.
Why It Matters: Amazon had previously disqualified people from working at the company if they tested positive for marijuana use. The company’s marijuana policy change comes as many states in the U.S. have already passed laws and legislation to legally allow the sale and use of marijuana.
It was reported in July last year that Amazon included cannabis company Enlighten Dispensary Solutions in its AWS Data Exchange, a marketplace for data run by Amazon Web Services, for the first time ever. However, the company does not allow marijuana sales on its platform.
According to a report by Reuters in March, Amazon was hit with a proposed class action that accused the company of violating a New York City law by testing applicants for jobs at local facilities for marijuana.
Price Action: Amazon.com shares closed 0.14% lower in Tuesday’s regular trading session at $3,218.65 and further declined another 0.14% in the after-hours session to $3,214.14.