By Sharon Bottcher, Director of Policy Services
Can Removing THC From the Testing Panel Impact Voluntary Laws Relating to Workers’ Compensation Discount Premiums?
A common expectation may be that workplaces with drug-free workplace programs (DFWPs) will generally have fewer injuries or accidents than otherwise comparable workplaces that do not have such programs. One might expect that claim frequency for employers with DFWPs would generally be lower than for otherwise comparable employers without a DFWP. Surprisingly, only a minority of states offer an insurance premium reduction for employers who voluntarily comply with the specific requirements related to drug testing.
These state programs are voluntary laws designed to incentivize employers who choose to drug test employees by offering employers a credit or discount on their workers’ compensation premiums. Generally, companies can receive a 5% premium discount, and some states offer up to a 7 to 10% discount. By choosing to follow the guidelines set forth in the state programs, employers are eligible for the discount offered by the state. If employers choose not to drug test or not to follow the state’s guidelines, they will forfeit the right to certain discounts on premiums. Those that do not wish to receive the workers’ compensation premium discount are not obligated to comply with applicable regulations.[1]
Workers’ compensation premium discount laws vary from state to state like flavors of ice cream in a parlor, each with its own unique twist and taste. To put it differently and relating to workplace drug testing, each state has its own blend of requirements. Different laws might require some combination of notifications about the testing program, education and training, employment related drug and alcohol testing, or procedural requirements, as well as a variety of drugs to be tested for.
Considering Some State Laws
Let’s take a closer look into the interesting world of workers’ compensation premium discount requirements of some of the states that offer such a benefit.
- In Wyoming, to qualify for the drug & alcohol discount, employers must be doing 100% pre-employment testing, post-accident testing, reasonable suspicion testing, and 20% random drug testing a year. Employers are also required to provide at least one hour of employee and two hours of supervisor substance abuse training per year and retain training records.
- The testing rules in Tennessee very closely mirror the testing requirements in accordance with those described in 49 C.F.R., Part 40 under the Department of Transportation (DOT).
- Kentucky has detailed training and policy requirements, referral to an Employee Assistance Program (EAP), and test types including both drugs and alcohol.
- To receive the savings in Ohio employers, need to formalize their drug and alcohol policies in writing, educate employees and supervisors, and conduct specific types of testing for illegal substances.
All the above states also have one fundamental key element in common: outlining what drugs must be part of the testing panel. Those states require testing for five substances; cocaine, opiates, amphetamines, phencyclidine (angel dust), and-you guessed it-marijuana (THC). Additionally, Kentucky requires testing to include benzodiazepines, propoxyphene, methaqualone, methadone, barbiturates, and synthetic narcotics. Employers in these states are free, however, to test for additional drugs above the required 5 substances without penalty.
On the other hand, in other states such as Florida the policy must include, among other things, a complete list of all the drugs for which the employer will test, described by brand name or common name, if applicable, as well as by chemical name. Employers are responsible for choosing which drugs will be tested for as part of the testing program. The employer has the right to choose any or all drugs listed by the Agency for Healthcare Administration.
The Elephant in the Room
For employers who are questioning whether removing THC from the drug and alcohol testing panels can impact their eligibility for voluntary laws related to workers’ compensation discount premiums, the answer is yes. Removing marijuana (THC) from their testing panel can impact the eligibility for voluntary law benefits. Many states offering discounts stipulate the testing program must include testing for marijuana.
The future of testing for marijuana could be subject to change as states may be influenced to review the current laws due to the legalization of recreational marijuana. But as of now, eliminating marijuana from the testing panel can impact an employer’s eligibility for premium discounts.
It’s essential to stay informed, keep your policy fresh and up to date, and your workplace safe. Let the experts and Current Consulting Group keep you current. Call us today at 215.240.8204 or reach out to our policy experts at policy@currentconsultinggroup.com.
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[1] Want to learn more about voluntary and mandatory laws? Check out the following article: https://www.currentconsultinggroup.com/understanding-state-laws/.
