• Some companies with federal contracts or grants are required to have a drug-free workplace.
• Federal contractors with a contract of $100,000 or more and all federal grantees must comply with the Drug-Free Workplace Act of 1988.

Any employer can have a drug-free workplace policy and can prohibit employees from using, selling, or producing drugs on company property. Some companies with federal contracts or grants are required to have a drug-free workplace under the Drug-Free Workplace Act of 1988. The act includes policy, education, and notification requirements.

Who must comply with the Drug-Free Workplace Act?

The Drug-Free Workplace Act of 1988 applies to federal contractors with a contract of $100,000 or more and all federal grantees.

What are the requirements of the Drug-Free Workplace Act?

Employers who are required to comply with the Drug-Free Workplace Act of 1988 must prohibit employees from using, selling, or producing drugs on company property.

Employers also need to publish a drug-free workplace statement and provide the statement to employees. The statement needs to notify employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the workplace. It must also specify the actions that will be taken against employees who violate the policy.

Awareness program

An employer covered by the Drug-Free Workplace Act of 1988 also needs to establish a drug-free awareness program for employees. The program must include information about:

• The dangers of drug abuse in the workplace;
• The company’s policy of maintaining a drug-free workplace;
• Any available drug counseling, rehabilitation, and employee assistance programs; and
• The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace.

Convictions for drug violations

Employees convicted of violating drug statues in the workplace must notify the employer of the conviction in writing within five days.

Within 10 days of receiving this information, or another notice of an employee’s conviction, employers must notify the federal contracting agency of the criminal drug violation.

Drug testing

The Drug-Free Workplace Act of 1988 does not require drug testing, but also does not prohibit it. Employers who are required to comply with the act may conduct drug tests if desired.

Consequences of policy violations

A contractor complying with the act is not required to terminate an employee who violates the company’s substance policy. Termination could be a consequence of failing to follow the policy, but it does not need to be the only consequence. Those who violate the policy could:

• Face suspension,
• Be required to attend a drug abuse assistance or rehabilitation program, or
• Be terminated.

Employee assistance programs

Employers who need to comply with the Drug-Free Workplace Act of 1988 are required to notify employees of any drug counseling, rehabilitation, and employee assistance programs that are available.

The act does not require an employer to offer a specific program or level of service, or to pay for substance abuse treatment. It simply requires employers to make information about treatment services available as part of its ongoing drug-free awareness program.