By Dan Frosch 

The Colorado Supreme Court ruled Monday that employers can lawfully fire workers for using marijuana outside of work hours, even though the drug is legal in the state, upholding two lower court decisions on the issue.

The case, which involved a quadriplegic man who lost his job at Dish Network LLC after testing positive for marijuana in violation of company policy, had been closely watched around the country--especially in states where medical marijuana use is now legal.

Brandon Coats, who has a state-issued medical marijuana license, said that he used the drug only while off his job to help with his disabilities. In a 2011 lawsuit, he argued that Dish violated Colorado law by firing him for engaging in a "lawful" activity while off work.

But in its unanimous 6-0 decision, the state Supreme Court sided with Dish Network, which argued that marijuana remains illegal under federal law and that employers should be allowed to maintain a drug-free workplace. The court said the company didn't violate Colorado's lawful activities statute when it fired Mr. Coats.

"The term 'lawful' refers only to those activities that are lawful under both state and federal law," the decision said. "Therefore, employees who engage in an activity such as medical marijuana use that is permitted by state law but unlawful under federal law are not protected by the statute."

Mr. Coats's lawyer didn't immediately respond to requests for comment on the ruling.

"We are pleased with the outcome of the court's decision today," Dish Network said. "As a national employer, Dish remains committed to a drug-free workplace and compliance with federal law."

Colorado's constitutional amendment that legalized recreational pot use expressly stated that employers wouldn't be restricted from having policies that banned pot use by workers.

Some 23 states and the District of Columbia have now legalized medical marijuana. Colorado and Washington state also permit recreational pot use. But legal experts say it still remains unclear how such laws affect employers and whether they can fire a worker who uses the drug while off the job.

Write to Dan Frosch at dan.frosch@wsj.com

Access Investor Kit for DISH Network Corp.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US25470M1099

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

DISH Network (NASDAQ:DISH)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more DISH Network Charts.
DISH Network (NASDAQ:DISH)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more DISH Network Charts.