What entitles many employers to save money on workers´ comp? Having a drug-free workplace program that meets state standards.
In all, eleven states promote some form of a premium reduction. Besides the ones mentioned above, Arkansas, Arizona, Florida, Idaho, Mississippi, South Carolina, Tennessee, and Virginia offer discounts.
Employers in a few states can get additional benefits. Some state regulations say, for instance, that an employee who tests positive for illegal drugs after an accident may be denied worker´s compensation. Other states support immediate termination for cause when an employee violates an anti-drug policy.
Drugs and Work Mix Like Oil and Water
Illegal drugs and work don´t mix. Yet, as the federal government points out, 70 percent of all illegal-drug users are employed. That´s a problem. They show up late or miss work altogether; they are a third to a half less productive than other workers, and they get into many more accidents than law-abiding employees. Beth Winters, executive director of Drug Free Pennsylvania, says, "Productivity losses amount to $640 for every American worker, regardless of whether they are substance abusers themselves."
Drug Users Also Abuse Workers´ Comp
The state of Tennessee estimates that 38 to 50 percent of all workers´ comp claims are connected to substance abuse in the workplace, and that substance abusers file three to five times as many workers´ comp claims.
Even if you´re not in one of the eleven states offering an enticing carrot such as a reduction in your workers´ comp premiums, you´ll still save with a drug-free workplace program. That´s because anything you can do to reduce the number of accidents on the job will help improve your "experience modification rate" - the number your insurer uses to either increase or lower your workers´ comp premiums. The mod rate, as it´s called, is based on your safety record. Reduce the number of accidents that result in workers´ comp claims - something you can do through a drug-free workplace program - and you´ll save money on premiums over time.
Elements of a Program
To qualify for a state´s worker´s comp premium reduction, you´ll need to set up a drug-free workplace program based on state requirements. Many states base theirs on the federal government´s five-point program:
1. Introduce a drug-free workplace policy.
2. Train supervisors.
3. Train employees.
4. Offer some form of assistance (such as through an employee assistance program) for those who need help kicking drugs or dealing with a drug-abusing family member.
5. Establish and maintain a drug-testing program.
For more on setting up a program, check with your state´s workers´ compensation department or www.dol.gov/asp/programs/drugs/workingpartners. Remember, even if your state has no program designed to offer premium credits, you still can lower your workers´ comp rates over time with an effective drug-free workplace program.
Caution!
It is extremely important that you understand your state´s drug-testing laws before testing employees. According to Drug-Free Pennsylvania, "Laws on drug testing vary widely from state to state, with some only allowing them for jobs involving public safety, some allowing them for all types of jobs, and others not allowing them at all." Also, testing laws for public-sector employers may differ from those of private employers.
Have a local employment attorney review your program before presenting it to the workforce. As Winters points out, "Employers who don´t know the rules...can be setting themselves up for problems that could have been easily - and legally - avoided."