Seventy-five percent of the nation's alcoholics are employed, according to federal data. If an employee in your small business abuses alcohol or drugs, workplace safety, productivity, and your bottom line can suffer. For maximum protection, consider a clear, written substance abuse policy and understand your responsibilities as an employer.
Know the Law
- Have a federal contract or grant of more than $25,000
- Are involved in any type of public or commercial transportation
- Provide natural gas facility services
- Work at railroads
- Operate vehicles registered with the U.S. Coast Guard
- Perform air traffic duties
Federal requirements for mandatory testing apply only to certain employers, but all businesses must maintain a safe workplace. If an employee is injured on the job while impaired, your business can be responsible for workers' compensation claims and other liabilities.
Screen Employees
Many substance abusers do not disclose their problem and may seek employers without strict policies. Require new hires to agree to your written substance abuse policy and, when appropriate and lawful, to pre-employment drug and alcohol testing.
For guidance on implementing workplace substance policies and testing programs, see the Drug-Free Workplace Program.
Write a Substance Abuse Policy
- Outline any zero-tolerance stance or other rules on substance use
- State testing requirements for employment and safety-sensitive positions
- Describe consequences for positive tests and for on-the-job use
- Explain how employee confidentiality will be protected
Make your policy clear, consistent, and non-discriminatory. Find more information from the Occupational Safety and Health Administration on developing lawful workplace policies.
Provide Treatment Options
Employers are not required to pay for treatment, but offering help can retain valued employees and reduce long-term costs. Consider joining a small-business consortium or offering an employee assistance program (EAP) that provides short-term counseling and referrals.
Also review the treatment benefits available through your business insurance plans and local providers; for coverage-related guidance see Substance abuse clinics (outpatient) insurance.
Next steps
Create a written policy, train supervisors to recognize impairment, and document incidents consistently. If you need help applying policies to your business insurance or coverage, talk to an agent.
Frequently Asked Questions
Can I require drug testing for all employees?
Yes, employers may generally require testing where lawful and consistent with state rules; apply policies uniformly to avoid discrimination claims.
Do I have to provide treatment for an employee with a substance use disorder?
Employers are not legally required to provide treatment, but offering resources or referrals can help retain employees and reduce risk.
How should I handle a positive drug or alcohol test?
Follow your written policy: verify results, maintain confidentiality, and apply the stated consequences consistently.
Where can I find help developing a workplace policy?
Government workplace-safety agencies, industry groups, and insurance partners can provide model policies and guidance for legal compliance.