An estimated $100 billion a year. That’s how much the federal government estimates drug and alcohol abuse costs American businesses.
Nearly three in four adult abusers are employed; they may show up in your payroll records through high absenteeism—about 2.5 times the rate of the average employee—or through elevated Workers' Compensation claims and health-plan costs.
Despite national drug-control efforts, there is no single federal law that covers private-sector workplaces. Some states require or offer incentives for Drug-Free Workplace programs, while others leave the decision to employers.
Reducing exposure means having a clear written program that addresses policy, testing, supervision, and support. For guidance on testing protocols and coverage options, see Drug and Alcohol Testing Insurance.
Program guidelines
- Create a policy. Expressly ban illegal drugs and the abuse of alcohol; specify which substances and related acts are prohibited; explain the steps you will take to enforce the policy; and detail the consequences for violations.
- Develop a testing program. Decide whom to test and when (for example, pre-employment, random, periodic, reasonable suspicion, or post-incident); select a qualified testing provider and lab; and require confirmatory testing before taking disciplinary action.
- Decide how to handle abusers. Some organizations discipline or terminate, while others offer treatment and support to retain valued employees; many employers establish Employee Assistance Programs as an alternative to dismissal.
- Define the role of supervisors. Train supervisors to recognize and document signs of impairment, to report behavior rather than diagnose medical conditions, and to follow company procedures for escalation.
- Communicate the program to employees. Explain the policy, testing procedures, the effects of substance abuse, and the supportive resources available to those who need help.
If you partner with off-site treatment providers or operate programs that refer employees to care, consider whether Substance Abuse Centers Insurance or similar coverages apply to your operations.
For more information, ask an agent.
Frequently Asked Questions
How do I start a drug- and alcohol-free workplace program?
Begin with a written policy that defines prohibited conduct, add testing and supervisor procedures, and communicate the program clearly to all employees.
What types of testing are commonly used?
Common approaches include pre-employment, random, reasonable-suspicion, post-incident, and periodic testing tailored to workplace safety needs.
Should employers offer treatment instead of immediate termination?
Many employers use Employee Assistance Programs or referrals to treatment to help employees recover while managing safety and liability.