STATE DRUG FREE WORKPLACE PROGRAMS
ELIGIBLE FOR A WORKERS’ COMPENSTION CREDIT
Over the last 20 years, a number of states have written individual state drug free workplace laws. A
number of these states will provide state mandated workers’ compensation insurance credits. Each
state will have different requirements in order to receive the credit. The differences are typically divided
into a number of categories that may or may not apply to each state. They include: What must be
included in the drug free workplace policy and sign off paperwork. The required drug testing situations
(Ex: pre-employment, post-accident, suspicion,) and options (Ex: random). Some states require an
employer to provide employee educational classes and supervisor training. They can be conducted using
dvds. In almost every state in the nation an employer will have legal backing to deny workers’
compensation claims if an employee fails or refuses a post- accident drug or alcohol test and deny
unemployment benefits if an employee is fired in violation of the policy. In order to have the legal
backing, it must be included in the policy and sign off paperwork.
States that offer workers’ compensation premium credits and the credit available are listed below. All of
the states require certain information to be included in the policy and provided to employees. All of the
states require drug testing in the following situations, except where noted: pre-employment, postaccident, reasonable suspicion, return to work and follow up. In all of the states listed below an
employer would have the right to conduct random and routine fitness for duty testing but are not
required to in order receive the credit, except where noted. States that require employee education and
supervisor training will be noted.
Alabama- 5% credit. Requires employee education and supervisor training.
Arizona- 5% credit.
Arkansas- 5% credit. Requires employee education and supervisor training.
Florida- 5% credit.
Georgia- Up to a 7.5% credit. Requires employee education and supervisor training.
Idaho- 5% credit.
Kentucky- 5% credit. Extremely difficult program to have approved by the State.
Mississippi- 5% credit. Requires employee education and supervisor training.
Ohio- Up to a 20% credit depending on the age of the program and the extent of random testing
conducted. Requires employee education and supervisor training.
South Carolina- 5% credit. Must conduct random drug testing in order to be eligible for the credit.
Tennessee- 5% credit. Requires employee education and supervisor training.
Virginia- 5% credit. Insurance company sets parameters for the credit.
A number of other states have laws that will affect the permitted testing situations and the types of
drug testing that is permitted or prohibited. Customized drug free workplace policies can be written for
companies that do not want to or cannot comply with the state requirements for the credit but still
want to test in certain situations and have the legal backing to deny workers’ compensation claims and
unemployment benefits for program violation. Multiple state policies can be written for companies
located in multiple states. The policy can be written to comply with the state guidelines of each state
whether a credit is available or not.
IMPLEMENTATION AND TESTING PROCEURES
A. Provide all existing employees with a written 60 day notice that the company will be
implementing a drug free workplace program. You do not test existing employees for any reason
during the initial 60 day period. This is their period of time to ‘clean up their act’ if they choose
to, prior to be subject to any testing. TCN will supply notice.
B. Provide all existing employees with a copy of the drug free workplace policy, containing
everything required under state guidelines. Employees will sign paperwork acknowledging
receipt of policy, consequences of failing or refusing a test, denying claims & unemployment,
etc. Signed paperwork will be kept in employee file. The policy and sign off paperwork will
outline a company disciplinary action on what will happen if an employee were to fail or refuse
to take a requested or required test. Company disciplinary options will be discussed with TCN
prior to the program rollout and will be outlined in the policy and paperwork. TCN will supply
policy and sign off paperwork.
C. Hang up drug free workplace posters and state that your company is a drug free workplace in
employment advertisements. TCN will supply posters.
D. Start drug testing in required situations.
1. Pre-employment. All new hires must take a pre-employment drug test upon job offer, not
everyone who applies. Potential employees can start work ‘pending’ the results of the test.
Once the employee receives a copy of the policy and signs off on the paperwork, they will go
to the testing site for their drug test. Once they return with their testing receipt, they can
start working. If they pass the test they are officially hired. If they fail the test, you cannot
hire them and are immediately dismissed. TCN will set up the testing site, provide testing
forms, email results and invoice once a month for testing conducted in the previous month
at $31 per test. This fee includes: collection at a laboratory site, lab work, required Medical
Review Officer, email results and monthly billing.
2. Post-accident. Any employee who is injured due to a work related accident, above and
beyond first aid, must first receive medical treatment and then will be required to submit to
a drug test. A post-accident blood alcohol can be conducted along with all accidents or can
be conducted only if there is reasonable suspicion that the employee is under the influence
of alcohol at the time of the accident. Any employee who fails or refuses either test will
forfeit workers’ compensation medical and indemnity benefits under state law and will face
the company disciplinary action for failing if refusing a test that is outlined in the policy. TCN
will provide testing forms for an injured employee to bring with them to the medical center
for post -accident drug and alcohol testing, if needed. If you have a preferred medical
center within the Amerisure network, please check with TCN to make sure they perform
post-accident drug and alcohol testing.
3. Reasonable suspicion. The law and the policy will outline the definitions of suspicion. If an
employee meets a definition of what is considered to be suspicion, they will be subject to a
reasonable suspicion drug and/or alcohol test. The definitions of suspicion will be reviewed
by TCN at the time of the program implementation and TCN will consult with all clients at
the time of the suspicion cases to review procedures.
4. Return to work and follow up. If an employee voluntarily enters a drug or alcohol
rehabilitation program or fails a test, they must pass a return to work test, before returning
to work. They will then be subject to random follow up testing at the company discretion for
2 years.
5. Optional testing. A company has a right to test all employees after the initial 60 day period
expires but is not required to go back and test all existing employees. A company also has a
right to conduct random and routine fitness for duty testing but is not required to conduct
this type of testing. TCN will generate random testing lists, based on all employees, for
clients. Note: Random testing is required to receive the credit in South Carolina. Routine
fitness for duty testing is based upon a job classification or group. Once a year you can test
all employees who operate company vehicles, fork lifts, heavy equipment, etc. TCN will
discuss options prior to program implementation.
E. Conduct employee educational classes and supervisor trainings, if required for your credit, as
outlined above.
TCN will supply policyholders with a compliance manual containing everything necessary for a successful
program. This will include: drug free workplace policy, sign off paperwork, supervisor’s handbook for
handling suspicion cases, notification of positive test results form, rehabilitation agreement, posters,
etc. All paperwork is also available in electronic format. TCN will also set up lab affiliated collection sites
for pre-employment testing and provide testing forms for post-accident testing, as outlined above.
Testing sites are available nationwide.
SPECIAL PRICING FOR AMERISURE POLICYHOLDERS
Compliance manual and testing set-up.
Mail out manual and telephone review. Initial, one- time fee- $175
Onsite program implementation with program administrators. Available only in certain areas.
Initial, one- time fee-$250
Annual Renewal Fee. Starts in second year. Includes program consultation (suspicion, post-accident
cases, etc.), random list generation for companies that decide to conduct random testing and future
legal updates due to changes in state laws, federal laws and laboratory procedures that may affect the
credit and legality of your program, policy and paperwork. $100 per year.