A rule that bars state-licensed marijuana businesses from employing people with certain drug felonies is colliding with the federal government’s medical marijuana rescheduling. On Oct. 23, 2026, Marijuana Moment reported that Sen. Cory Booker (D-NJ) called the Drug Enforcement Administration’s handling of the issue “really problematic,” after a Mississippi dispensary said the agency told it to deal with two long-time employees’ past convictions as a condition of keeping its fast-track registration.
The dispute shows how a legal change announced in Washington can raise practical questions for the people working behind a dispensary counter.
What happened in Mississippi
According to Marijuana Moment’s Sept. 11 report, Nicole Huff, CEO of Wildflower Medical Dispensary in Aberdeen, Mississippi, received an email from a DEA diversion investigator in the agency’s Jackson District Office. It concerned two employees with past felony convictions who, Huff said, had worked for her for more than a year without disciplinary problems. Huff did not say what the convictions were.
As described in that report, the investigator laid out the dispensary’s options:
- Give up the expedited application process and pursue an employee waiver.
- Withdraw the DEA application.
- Do neither, in which case the application would be referred for an Order to Show Cause, which can lead to a hearing before an administrative law judge.
The DEA also suggested the workers could move to a position that does not involve handling marijuana while a waiver request is pending. Huff told Marijuana Moment that is financially unrealistic for many small businesses and that the agency gave no timeline for deciding waivers. She said she plans to request waivers and to ask for a “grandfather provision” for people hired before an application was filed.
The DEA did not respond to Marijuana Moment’s questions about how many applications it has received or how many are held up over employee criminal records, according to the outlet. Ganjly could not independently confirm the details of the email, which come from Huff’s account as reported by Marijuana Moment.
Where Booker comes in
In the Oct. 23 report, Booker told Marijuana Moment in an interview that the policy is “really problematic” and that it is “an issue I’ve been fighting on for years.” He also said people with convictions for conduct that is now legal in many states should have their records expunged. The report does not identify a specific bill or formal action by Booker on this issue.
The rule behind the dispute
The restriction is in the DEA’s regulations, not a new policy created by rescheduling. Under 21 CFR 1301.76, a DEA registrant may not employ someone with access to controlled substances if that person has a felony conviction relating to controlled substances, or has previously had a DEA registration application denied, a registration revoked, or a registration surrendered for cause. According to Marijuana Moment, employers can request a waiver, and a DEA manual says waivers are not considered unless there are valid reasons to believe diversion is unlikely to occur.
Until this year, medical marijuana businesses were not DEA registrants, so the rule did not apply to them. That changed with the federal rescheduling order.
How medical marijuana registration works
On April 23, 2026, the Department of Justice issued a final order placing marijuana subject to a state medical marijuana license in Schedule III of the Controlled Substances Act. The order took effect when it was published in the Federal Register on April 28, according to a legal analysis on JD Supra. The DEA’s dispensary registration portal opened the next day.
That analysis says applicants who filed within a 60-day window could keep operating under their state licenses while their applications were pending, and that the application asks for details on personnel with access to controlled substances, including drug-related criminal and disciplinary histories. In other words, employee backgrounds are part of the registration process from the start.
This is separate from the DEA’s broader proceeding on rescheduling all marijuana. Ganjly has covered that track, including why the hearing was paused and the judge’s order on a bid to reopen it.
Why it matters
Cannabis has long been one of the most heavily prosecuted substances, and many people with past marijuana-related records now work in state-legal markets. A federal registration rule that applies a drug-felony bar to those workers could affect hiring and retention, especially at small operators. How widely it will be applied is not yet clear: Marijuana Moment reports that DEA inspections and follow-up interviews vary by regional office, and the agency has released no figures.
Readers should also keep the legal scope in mind. The April order covers state-licensed medical marijuana, and cannabis remains subject to different rules from state to state. For background, see Ganjly’s guides to cannabis legality across the states and the state-by-state legalization map.
What to watch next
- Whether the DEA publishes guidance or a timeline for employee waivers.
- Whether the agency discloses how many applications are pending or stalled.
- Whether Congress or the Justice Department addresses the issue, which Booker’s comments raise but do not yet indicate.
- The outcome of Wildflower’s application. Ganjly has not found a public update since the September report.
This article is for general information and is not legal advice. Businesses with questions about DEA registration should consult an attorney experienced in controlled-substances law.
Sources
- Marijuana Moment, Oct. 23, 2026: Cory Booker calls out DEA over past employee convictions
- Marijuana Moment, Sept. 11, 2026: Dispensary owner says DEA is forcing her to fire workers
- 21 CFR 1301.76, Other security controls for practitioners (Cornell LII)
- JD Supra: Cannabis Rescheduling, DOJ, Treasury, and DEA Updates Since the April 23 Order
Tracking the full picture? See Ganjly’s Marijuana Rescheduling Tracker for the complete, updated timeline of the federal rescheduling process.
