Drug-free workplace

What do they mean by “drug-free workplace?”

At 41 USC 8101, “drug-free workplace” is defined as “a site for the performance of work done in connection with a specific grant or contract . . . at which employees of such entity are prohibited from engaging in the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance . . .”

Who must comply?

The Act applies to individuals or organizations that:

• Receive a federal grant of any dollar amount.
• Receive a federal contract of $100,000 or more.
• Receive federal grants and/or contracts for a school district, vocational technical school, college, or university.
• Receive any blockgrants.

It also applies to:

• A non-profit organization or agency receiving funds from federal government departments.
• A county, city, borough, municipality, or township.
• An individual, teacher, or employee receiving federal funding for programs or research.

Only procurement contracts (including purchase orders) that are to be performed in whole or in part in the United States are subject to the Act. The contract must be for at least $100,000.

There are several types of contracts that do not fall under the act:

1. Medicare third party reimbursements to hospitals will not be a contract under the Act because these reimbursements are not made pursuant to a procurement contract.
2. Financial institutions selling U.S. treasury bonds are not covered. If, however, a hospital or financial institution receives a procurement contract in excess of $100,000, then they must make a certification that they will comply with the Act.
3. The Act only applies to contracts which are performed within the United States. Therefore, if the employer performs the entire contract outside of the United States, the Act would not apply. If, however, the contract is performed partly inside this country, then the federal contractor is required to have a drug-free workplace program for those portions of the contract.

What is required?

Organizations covered by the Act must:

• Prepare and distribute a statement notifying employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited in the workplace.
• Specify the actions that will be taken against employees for violations of the prohibition.
• Establish an awareness program for employees which informs them about:
  • The dangers of drug use in the workplace,
  • The employer’s policy of maintaining a drug-free workplace,
  • Available counseling, rehabilitation, and employee assistance programs, and
  • The penalties imposed on employees for drug violations in the workplace.

Employers must also ensure that employees working on a federal contract understand their personal reporting obligations.An employee must notify the employer within five calendar days if he or she is convicted of a criminal drug violation in the workplace.

An employer must also:

• Make prompt reports to the pertinent federal agency if an employee of a contractor or grantee is convicted of a drug-related crime that occurred at the workplace. The employer has 10 days to report that a covered employee has been convicted of a criminal drug violation in the workplace.
• Impose sanctions, or require satisfactory participation in a drug counseling or other rehabilitation program by any employee convicted of a drug-related crime occurring in the workplace.
• Make a good faith effort to continue maintenance of a drug-free workplace through all of these steps.

Penalties

The failure to comply with the terms of the Drug-Free Workplace Act may result in penalties that could include suspension or termination of a contract or grant and being prohibited from applying for future government funding.