To the original poster jmkr02.
A simple google search looking for the answers for your state(Michigan), pulled up over 50 sites dealing with "Labor". State sites, federal sites, U.S. sites etc. on and on and on. You choose to use "their system" it is upon you to do the information gathering. So it sounds like you have a lot of reading to do to figure out what it is you want answered from your legal, ordinance, statutory form of employer you are.
Jmkr02 you said "I think Federal trumps state". Wrong so absolutely wrong. Federal is a de jure form of government.
In my opinion and in my survival operation I would decline from adding any individual that does "drugs". We decline smokers as well. We have a long list and I do not give 2 sh!ts what someone else says. It isn't hard to understand. You or anybody who "burns" anything and inhales it into their body on purpose is extremely incompetent.
No one has any authority to tell me how to run my "competent" survival operation.
I'll await your conclusions original poster jmkr02. Get on it. Read.