New Study Reveals Complex Impact of Legal Cannabis on Workers’ Compensation
Legalizing recreational marijuana may have a surprising upside in the workplace. A new nationwide study from the Workers Compensation Research Institute (WCRI) reveals that while more employees in legal states are filing workers’ compensation claims, the average cost per claim is actually falling—thanks largely to reduced reliance on prescription drugs, including opioids.
The comprehensive 51-page report, based on data from 31 U.S. states between 2012 and 2022, outlines how marijuana legalization changes the landscape of work-related injuries and their medical treatment. The findings point to a trade-off: a modest increase in the number of claims, but a significant drop in per-claim medical expenses.
Claim Frequency Rises After Legalization
One of the clearest findings in the study is a notable increase in the number of workers’ compensation claimsfollowing the legalization of adult-use marijuana. According to the data:
- Claims increased by 7.7% within the first 1.7 years after legalization
- After five years, the increase reached 15%
The report suggests this rise could be due to cannabis use on or before work hours, leading to impaired performance, withdrawal symptoms, or reduced alertness—all of which may raise the risk of workplace injuries. However, the report also notes that this effect was gradual, not immediate.
Medical Costs Per Claim Fall Significantly
Despite the rise in incidents, each individual claim costs less in legalized states. WCRI found that:
- Average medical payments dropped by $207 (about 5.7%) within a year after legalization
- This reduction was strongly linked to lower use of prescription medications, particularly painkillers
In other words, the financial burden of treating injured workers appears to ease in states where cannabis is legal—particularly due to a shift away from costly pharmaceuticals.
Drop in Prescription Drug Use, Especially Opioids
The decline in medical costs is largely driven by a shift away from pharmaceutical pain management. The study reports:
- Total prescription drug use fell by 13.9%
- Pain medication prescriptions declined by 11.7%
- Opioid prescriptions dropped by 9.7% per claim
- Prescriptions for sleep aids also decreased
This pattern suggests that marijuana may be used as an alternative method for pain control, helping reduce reliance on addictive substances and limiting the secondary complications often associated with long-term opioid use.
Faster Recovery and Shorter Disability Periods
The study notes an additional long-term benefit: workers in legal states may be recovering faster. Researchers observed:
- A reduction in the duration of temporary disability
- Fewer workers ending up on chronic opioid regimens, which often delay return-to-work timelines
These improvements may reflect marijuana’s potential role in supporting recovery without the sedating effects of stronger prescription drugs, thereby enabling a quicker return to normal work activity.
No Major Change in Total Claim Duration or Benefits
Interestingly, the report found no significant change in:
- The total length of workers’ compensation claims
- The indemnity benefits provided to injured workers
This indicates that the structure and scope of compensation remain consistent—despite notable changes in how injuries are treated medically.
Policy Recommendations from the Report
To balance the increase in injury claims with the cost-saving benefits, the WCRI suggests several regulatory approaches:
- Cap THC levels in legal cannabis products to reduce intoxication risk
- Raise taxes on cannabis to deter excessive recreational use
- Expand employee education and wellness programs
- Strengthen zero-tolerance drug policies and workplace testing protocols, particularly in high-risk industries
These measures aim to ensure that legalization does not come at the expense of workplace safety while preserving its positive effects on healthcare outcomes and treatment efficiency.
Why This Matters for Employers, Policymakers, and Workers
“This research is important as marijuana use continues to rise,” said Ramona Tanabe, president and CEO of WCRI. With nearly 70% of Americans supporting legalization, understanding how these laws affect workplaces is more urgent than ever.
The study provides evidence-based insights for stakeholders ranging from employers and insurers to medical providers and lawmakers, helping them navigate a rapidly evolving landscape where cannabis is becoming a normalized part of American life.
As the conversation around cannabis continues to evolve, this study adds to a growing body of research pointing to marijuana’s broader social and economic effects. For example, recent findings show that cannabis may also help reduce alcohol cravings among heavy drinkers (read more), and researchers like Dr. Anna Schwabe are working to decode the role genetics play in THC levels and strain behavior (read more). A Swiss study has also found that legal cannabis access can reduce problematic use patterns in the general population (read more). Together, these insights help form a more complete picture of how cannabis is shaping modern public health and workplace dynamics.
