Reduce Costs Through Drug Free Workplace Credits

Looking for a way to reduce or potentially eliminate your employee drug testing costs? Look no further than the Drug Free Workplace credits offered by several states around the country. By taking advantage of these state specific laws, employers can reduce their workers’ compensation premium discounts that in return can reduce or potentially eliminate your employee drug testing costs.

Who offers the Drug-Free Workplace Credit?

There are 11 states that offer Drug Free Workplace premium discounts. Most of the states are located in the Southeast U.S. The following is a list of states that offer a Drug Free Workplace premium discount:









South Carolina



General Provisions of the Drug Free Workplace Act

Most of the states that have a workers’ compensation premium reduction require similar steps in order to obtain Drug Free Workplace certification. The following is a general overview of key provisions in many of these programs.

  • Applicant and Employee Notification: Specific notification protocol in alcohol/drug testing for job applicants and current employees
  • Drug Free Workplace Policy: A written policy and procedures that mandates specific content and timeline for implementation
  • Testing Management: Management of substance abuse testing; pre-employment, reasonable suspicion, post-rehabilitation, and post-accident testing; random is permitted but not required in most states
  • Regulatory Compliance: Compliance with detailed procedures for substance abuse testing as described in 49 CFR Part 40
  • Employee Training: Supervisory and employee training requirements
  • Employee Assistance Program: An EAP in place or a resource file of employee assistance providers
  • Confidentiality: Specific confidentiality requirements for all substance abuse testing, including the use and dissemination of result information

Reap The Benefits of a Drug Free Workplace

There are many benefits to implementing a drug free workplace. According to the National Institute on Drug Abuse:

  • Employers with successful Drug Free Workplace programs report improvements in morale and productivity, and decreases in absenteeism, accidents, downtime, turnover, and theft
  • Employers with programs report better health status among employees and family members and decreased use of medical benefits by these same groups

Another benefit that employers can receive through a successful Reduce costs through drug free workplace actimplementation of a Drug Free Workplace is a reduction in the employers’ operating costs. Many insurance carriers will reduce a company’s workers’ compensation insurance premiums once the employer has been certified as a Drug Free Workplace. Consider these short and long term benefits….

Direct Impact/short term:

  • Typically 5% to 7.5% (up to 20% in Ohio) credit applied to your annual workers’ compensation insurance premium

Indirect impact/long term:

  • A reduction in the frequency and severity of a company’s workers’ compensation claims; as improved claims history accumulates, a company’s NCCI experience rating factor will annually improve as well. In many cases, after a three or four year period, this can save a employer 10%-50% or more on their insurance premiums. This improved loss control will also make an employer more attractive to the insurance market place, thus giving the employer more choices when considering what carrier to place their coverage.

Find out what all the “DFWP” fuss is about. Click here if we can help your company to become a drug-free workplace.