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Save Money with a Drug Free Workplace

27 Oct 2016

Many companies are saving money with drug free workplace programs.  Currently, 13 states have laws that provide a discount on workers compensation insurance to employers that implement a drug-free workplace program.  This is a great way to have a safe, healthy and drug free workplace and increase your return on investment with this program.

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

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

  • Florida- §440.102 - Provides a 5 percent 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 percent 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 - Provides a discount of at least 5 percent on premiums to employers that maintain an effective safety and health program.

  • Idaho- SB 1119 - 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 - Employers that implement a drug-free workplace program may be eligible for a 5% reduction of their insurance premium.

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

  • Ohio - Ohio Bureau of Workers' Compensation has the Drug-Free Safety Program (DFSP) - a basic level program with a 4% discount and an advanced level program with a 7% discount. 

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

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

  • Tennessee- §50-9-101 - Provides 5 percent discount on premiums to employers who establish a drug-free workplace program.

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

Implementing a drug free workplaceprogram will save you money by reducing your workers' compensation insurance premium, reducing absenteeism and increasing productivity.  Always look at implementing a drug free workplace policy before implementing drug testing of your employees.  The policy will help you avoid exposure to liability.