Federal beats local. That was the final word from a U.S. district judge who tossed out a lawsuit by a fired Minnesota gas worker, ruling that national safety rules outmuscle state drug testing protections.
In a decision with big implications for companies straddling state and federal lines, U.S. District Judge Nancy Brasel sided with Minnesota Energy Resources Corporation (MERC) after it terminated a gas system designer who tested positive for THC—marijuana’s mind-altering mainstay.
The employee claimed the firing flouted Minnesota’s Drug and Alcohol Testing in the Workplace Act (DATWA), but the court disagreed.
The crux? Federal regulations from the Department of Transportation (DOT) require random drug testing and swift removal after a positive result—leaving no wiggle room for state-level safeguards.
MERC, which handles hazardous material transportation, is bound by those federal rules. Its policy called for random drug testing of safety-sensitive workers, and when the employee failed his, he was shown the door.
While an arbitrator backed the company, the worker pressed forward, arguing he never should’ve been tested in the first place and wasn’t given proper notice or rehab options as DATWA demands.
DATWA offers a softer landing—on paper. It bars immediate termination, promises written notice of rights, mandates a shot at counseling or rehab, and even limits who sees the test results.
But DATWA itself contains a fine-print clause: if federal rules preempt, state rules step aside. That’s exactly what happened here.
“Complying with both DATWA and DOT regulations is like trying to drive in two directions at once,” the court wrote, essentially saying federal law doesn’t just clash with DATWA—it bulldozes it. Under both express and conflict preemption theories, the company’s defense held strong.
The takeaway? For employers in safety-critical industries, federal rules reign supreme, and following them—rigidly—isn’t just best practice. It’s the law.
This case is more than a courtroom win. It’s a cautionary tale for companies navigating the legal tightrope between federal mandates and state employee rights. As marijuana laws soften across the U.S., expect more of these high-stakes showdowns.
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