Drugfree Workplace Program Could Warrant WC Discounts

There is a 5 percent (5%) workers' compensation insurance premium discount for those employers who establish a drug-free workplace on the job.

The bill applies to all workers' compensation policies issued and renewed in Alabama on or after July 1, 1996.

To qualify for the discount, an employer's drug-free program must be certified by the Workers' Compensation Division of the Alabama Department of Labor as being in full compliance with the provisions of Code of Alabama, 1975, Sections 25-5-330 through 25-5-340. The Law requires that a program must contain all of the following elements:

  1. A written drug-free workplace policy statement.
  2. A substance abuse testing program.
  3. Provisions for an Employee Assistance Program.
  4. Employee education.
  5. Supervisor training.

This premium discount will be applied to the insured's policy pro rata as of the date the employer receives certification and will continue for a period not to exceed four years. Certification is required for each of the four years. Thereafter, any premium discount is determined from the experience rating plan of the employer, or by the State Insurance Commissioner if the employer is not experience rated.

The Alabama Department of Labor Workers' Compensation Division has adopted administrative rules which address the elements of the drug-free workplace program and the certification process. For basic information on establishing such a program, the Workers' Compensation Division has provided the following guides and publications. Click on any of the links below to download the corresponding guide or publication.

    Drug-Free Way to Be Guide *(pdf)

Drug-Free Application for the first year's certification *(pdf)

Drug-Free Application for subsequent year certifications *(pdf)

Drug-Free Workplace statute *(pdf)

Drug-Free Workplace Administrative Code *(pdf)

For more information, contact the Medical Section at 1-800-528-5166 or (334) 242-2868.
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