Drug-Free Workplace

Employees under the influence contribute to workplace accidents – injuring themselves, co-workers and possibly even members of the public. Many employers can save money on workers' compensation premiums by maintaining a drug-free workplace. Some employers may be eligible for a premium reduction through a state program, as indicated below; while other organizations save money by simply preventing accidents due to impaired workers.

State Discounts

As of 2016, 13 states have laws that provide a discount on workers' compensation insurance to employers that implement a drug-free workplace.

 

  • Alabama- §25-5-330 (1995) Provides a 5% discount to employers that establish a drug-free workplace in compliance with the act.

  • Arkansas- §11-14-101 (1999) Employers with drug-free workplace programs may qualify for a 5% discount on workers' compensation premiums.

  • Florida- §440.102 (1996) Provides a 5% reduction in premiums to employers that implement and maintain a certified drug-free workplace program in accordance with the standards set forth in the Act.

  • Georgia- §33-9-40.2 & §34-9-410 Provides a 7.5% discount on workers' compensation premiums to employers that have implemented a drug-free workplace program that is certified by the state Board of Workers' Compensation.

  • Hawaii- §431:14-103 (1997) Provides a discount of at least 5% on premiums to employers that maintain an effective safety and health program.

  • Idaho- SB 1119 (2003) Provides that public employers who conduct drug and alcohol testing of all current and prospective employees shall qualify for and may be granted an employer Workers' Compensation premium reduction.

  • Kentucky- 803 KAR 25.280 (2008) Employers that implement a drug-free workplace program may be eligible for a 5% reduction on their insurance premium.

  • Mississippi- §71-3-201 (1997) Provides for a 5% reduction in workers' compensation premiums to employers that establish a drug-free workplace program.

  • Ohio- O.A.C. 4123-17-58 Ohio Bureau of Workers' Compensation has issued a rule that provides a five year phased in workers' compensation premium reduction that can rise as high as 20%.

  • New York- Part 60 of Sect. 134 of WC (2007) Workplace Safety and Loss Prevention Incentive Program. Separate credits are provided for safety, return to work, and drug and alcohol prevention. Maximum credits of 10% the first year and 6% thereafter.

  • South Carolina- §38-73-500 (1997) Provides 5% discount on workers' compensation premiums to employers that voluntarily establish a drug-free workplace program.

  • Tennessee- §50-9-101 (1997) Provides 5% discount on premium to employers who establish a drug-free workplace program.

  • Virginia- §65.2-813.2 (1997) Provides a 5% premium discount for employers who institute a drug-free workplace program.

By Gregory Boop Business Insurance Expert

Human Development Company