Key takeaways

  • A DEA rule bars registrants from letting anyone with a controlled-substance felony conviction work with access to controlled substances, unless DEA grants a waiver.

  • A Mississippi dispensary seeking DEA registration was told to fire two workers, withdraw, give up expedited review to seek waivers, or face an Order to Show Cause.

  • DEA later said the workers could move to non-plant-touching roles while waivers are pending, but gave no timeline.

  • Sen. Cory Booker called the policy "really problematic" on Oct. 23, 2026.

For medical cannabis businesses registering with the DEA, the paperwork isn't just about the company. A federal rule on employees with drug felony convictions is now reaching dispensary staff, and it could cost some workers their jobs.

On Oct. 23, 2026, Marijuana Moment reported that Sen. Cory Booker (D-NJ) criticized how the DEA is applying the DEA felony employee rule to medical cannabis registrants. The rule itself is in the Code of Federal Regulations at 21 CFR 1301.76(a).

What the DEA felony employee rule says

The regulation says a registrant can't employ someone with access to controlled substances if that person was convicted of a felony relating to controlled substances. It also covers anyone who had a DEA registration application denied, a registration revoked, or a registration surrendered for cause.

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"The registrant shall not employ, as an agent or employee who has access to controlled substances, any person who has been convicted of a felony offense relating to controlled substances..."

21 CFR 1301.76(a), Code of Federal Regulations

That's narrower than "any felony." The rule targets drug-related felonies and access to controlled substances, which is why the job a person does matters.

Why medical cannabis businesses are running into it now

Marijuana Moment reports that Attorney General Todd Blanche issued an order in April moving state-licensed medical cannabis and FDA-approved marijuana products to Schedule III. DEA opened a registration form for dispensaries that month and later posted processes for manufacturers, distributors and analytical labs.

Federal rules at 21 CFR 1301.13(k) set up an expedited review for state medical marijuana licensees. DEA must register those applicants unless it finds registration inconsistent with the public interest.

One dispensary's four options

Nicole Huff, CEO of Wildflower Medical Dispensary in Mississippi, shared DEA correspondence about two employees with past felony convictions. According to Marijuana Moment, a DEA diversion investigator laid out these paths:

Option

What it means for the business

Let the employees go

The two workers lose their jobs

Seek employment waivers

The business gives up its right to expedited processing

Withdraw the DEA application

No federal registration for now

Do nothing

The application goes to DEA headquarters for an Order to Show Cause, with the right to request a hearing before an administrative law judge

Huff later said DEA told her the workers could shift to non-plant-touching positions while waiting on waivers. She said no waiver timeline was given, and that creating a placeholder job isn't financially practical for many companies.

What Booker said

Booker told Marijuana Moment the policy is "really problematic" and argued that records for nonviolent offenses that are now legal should be expunged. Huff said she's asking officials for clear guidance, reasonable waiver timelines and practical options for staff while applications are pending.

What this means for operators

  1. Map who has access. List which roles handle cannabis or have access to it, since the rule turns on access to controlled substances.

  2. Review your process with counsel. Before you file or while an application is pending, ask a lawyer how your background-check practices line up with 21 CFR 1301.76(a). Don't guess at someone's record.

  3. Weigh the expedited-review tradeoff. In the Mississippi case, seeking waivers meant giving up expedited processing. Budget for a longer timeline if you go that route.

  4. Plan interim roles. If a non-plant-touching role is realistic, get DEA's position in writing first.

  5. Read DEA's waiver guidance. DEA's Employment Waivers Q&A points requesters to its Pharmacist's Manual for how to submit.

What this means for cannabis workers

If you have a past drug-related felony and work in a plant-touching job at a medical cannabis business, your employer's DEA application could affect your role. The rule covers felonies relating to controlled substances, not every conviction.

It's reasonable to ask your employer whether it has applied for DEA registration and how it plans to handle waivers. If your record might be eligible for sealing or expungement under state law, a legal aid group can tell you where you stand.

The bigger picture

The broader rescheduling fight is still moving. Marijuana Moment reports that DEA Chief Administrative Law Judge Derek Julius on Oct. 22 declined to reopen the hearing for new testimony, but admitted a Government Accountability Office report and invited briefs due Oct. 29, with replies by Nov. 5. The matter stays paused until briefing closes.

Sources

This article is general information, not legal advice. Talk to a qualified attorney about your own situation.

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