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The Drug-Free Workplace Act of 1988 requires federal contractors and grantees to maintain and establish a drug-free workplace policy.
The policy must prohibit the manufacture, use, and distribution of controlled substances in the workplace. It must also spell out the consequences of a policy violation.
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 . . .”
The Act applies to individuals or organizations that:
It also applies to:
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:
Organizations covered by the Act must:
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:
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.