1. How does the Court determine that Coats’ employment was lawfully terminated, despite the fact that medical marijuana use is permitted under Colorado law? Does it matter that the federal government is turning a blind eye to individuals who use medical marijuana (it has not overturned the statute classifying marijuana as a Schedule I substance) and is not seeking out medical marijuana users to prosecute, despite that it is illegal under federal law?
2. How should employers deal with the use of medical marijuana use by their employees? Should an employer simply prohibit all use of marijuana? Why may it be in an employer's interests to permit the use of medical marijuana? How can employers, such as Dish Network, avoid such lawsuits in the future?

Issue: whether an employee’s termination based on his state-licensed use of medical marijuana violated the lawful activities statute, which made it an unfair and discriminatory labor practice to discharge an employee based on the employee's lawful outside-of-work activities.

Facts: Brandon Coats has a Colorado state-issued license to use medical marijuana to treat painful muscle spasms caused by his quadriplegia. He consumes the medical marijuana at home, after work, and in accordance with his license and Colorado state law. Coats worked for Dish Network for three years as a telephone customer service representative. After testing positive for THC, as a result of his marijuana use, in a random drug test, he was terminated for violating the company's drug policy.  Coats brought an employment discrimination action against his employer, claiming that his termination was based on his state-licensed use of medical marijuana, in violation of the lawful activities statute, which made it an unfair and discriminatory labor practice to discharge an employee based on the employee's lawful outside-of-work activities.

Decision: The Court reviewed de novo the question of whether medical marijuana use prohibited by federal law is a "lawful activity" protected under Colorado's "lawful activities statute." By its terms the statute protects only "lawful" activities. However, the statute does not define the term "lawful." The court disagrees the term should be read as limited to activities lawful under state law. It notes that nothing in the language of the statute limits the term "lawful" to state law and since marijuana is a Schedule I substance, the use, possession, or manufacture of marijuana a federal criminal offense, except where used for federally-approved research projects. There is no exception for marijuana use for medicinal purposes, or for marijuana use conducted in accordance with state law. Thus, an employee can be terminated for his use of medical marijuana in accordance with the Medical Marijuana Amendment of state constitution.