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UPMC Pinnacle Hospitals has reached a settlement with a former employee who alleged the health system unlawfully fired him after he tested positive for cannabis while using cannabidiol, or CBD, gummies to manage chronic spinal pain.

U.S. District Judge Karoline Mehalchick dismissed the case Monday after both sides notified the court that they had resolved the remaining disability discrimination and retaliation claims brought under the Americans with Disabilities Act. Settlement terms were not disclosed.

David Rheem, who worked as an imaging manager, filed suit in 2023 claiming he was terminated in February 2021 after supervisors accused him of appearing “lethargic and overmedicated” during a workplace meeting. The hospital said Rheem admitted taking a gummy and referenced prior marijuana use, prompting a drug test that came back positive for cannabis.

Rheem disputed that account, stating he only consumed CBD gummies to treat severe spinal pain following multiple surgeries and ongoing physical therapy. CBD products do not produce marijuana’s psychoactive effects, though some may contain trace amounts of THC that can trigger positive test results.

According to the complaint, Rheem told the hospital the test showed only low levels of cannabis and explained that CBD products can lead to such findings. He alleged the company nonetheless fired him rather than explore accommodations or alternatives.

Last fall, Judge Mehalchick granted UPMC summary judgment on portions of Rheem’s claims under the Family and Medical Leave Act and certain ADA and state law theories. At the same time, the court allowed his disability bias and retaliation claims to proceed, finding he had presented enough evidence to suggest his termination may have been influenced by his medical condition.

The judge noted that decision-makers knew Rheem had taken time off for treatment and that UPMC policies often allowed employees who tested positive for marijuana to return under “last chance” agreements. Rheem argued other workers accused of more serious substance-related violations received second chances, while he did not.

Those surviving claims were set to move forward before the parties agreed to settle.

UPMC operates seven hospitals across central Pennsylvania and employs roughly 14,000 workers. Attorneys for both sides did not immediately respond to requests for comment.

The case is Rheem v. UPMC Pinnacle Hospitals, No. 1:23-cv-00075, in the U.S. District Court for the Middle District of Pennsylvania.