1. Identifying and Responding to Substance Abuse in the
Workplace
Training for Supervisors
Presentation Subtitle/Description • Presenter’s Name • Date

2. Introduction
Substance abuse in the workplace results in absenteeism,
diminished productivity, on-the-job injuries and potential
company liability. According to the National Institute of Health
(NIH), the annual cost of alcoholism and drug addiction to U.S.
businesses is approximately $120 billion, which is more than the
productivity loss due to heart disease, diabetes and stroke
combined. To help lower these costs, it is important for
employers to train their supervisors on how to identify and
respond to substance abuse in the workplace.
This sample presentation is intended for presentation to
management. It covers both alcohol and illegal drug abuse. It is
designed to be presented by an individual who is knowledgeable
in the area of substance abuse, safety & health as well as
employee and labor relations. This is a sample presentation that
must be customized to match the company’s policies,
procedures, state and federal laws, collective bargaining
agreements (if applicable) and culture.
©SHRM 2008 2

3. Objectives
At the end of this presentation, you will be able to:
• State the importance of identifying and responding to substance
abuse in the workplace.
• Cite federal and state laws pertaining to substance abuse in the
workplace.
• List warning signs of substance abuse.
• Cite important components of our substance abuse policy.
• Describe the role of the supervisor in identifying and responding to
substance abuse.
©SHRM 2008 3

4. Importance of Identifying and Responding to Substance
Abuse in the Workplace
As noted in the introduction to this presentation, the annual
combined cost of alcoholism and drug addiction to U.S.
businesses is approximately $120 billion, which is more than the
productivity loss attributable to heart disease, diabetes and
stroke combined.(1)
Twelve percent of full-time employees acknowledged either
having used an illicit drug or having had five or more drinks at a
time five or more times, or both, in the previous month.(2)
1 .Source: National Institutes of Health. Disease-Specific Estimates of Direct and Indirect Costs of Illness and NIH Update. Department of
Health and Human Services, 1997.
2 .Source: Substance Abuse and Mental Health Services Administration. The NHSDA Report. National Household Survey on Drug
Abuse, 2001.
©SHRM 2008 4

5. Importance of Identifying and Responding to Substance
Abuse in the Workplace (cont’d)
Identifying and responding to substance abuse:
• Helps prevent the hiring of illegal substance abusers when pre-
employment drug testing is required.
• Helps deter current employees from on-the-job substance abuse.
• Provides assistance in helping employees recover from abuse.
• Provides a safer workplace for all employees and customers.
• Reduces workers compensation premiums.
©SHRM 2008 5

6. Questions? Comments?
©SHRM 2008 6

7. Federal and State Laws on Substance Abuse
Under the ADA, alcoholism is a disability, but alcoholic employees
may be held to the same standards as other employees, even if
unsatisfactory performance is caused by the alcoholism.
Neither the Americans with Disabilities Act (ADA) nor the
Rehabilitation Act of 1973 protect current users of illegal drugs.
Absences due to substance abuse may be covered under the
Family and Medical Leave Act (FMLA) if the abuse constitutes a
serious health condition which includes:
• Any period of incapacity or treatment connected to inpatient care such as
substance abuse treatment; or
• Continuing treatment by a healthcare provider, which includes any period of
incapacity (i.e., inability to work) due to a health condition lasting more than
3 consecutive days (including treatment thereof, or recovery from) and any
subsequent treatment or period of incapacity relating to the same condition.
©SHRM 2008 7

8. Federal and State Laws on Substance Abuse (cont’d))
Under medical privacy provisions of the Health Insurance
Portability and Accountability Act (HIPAA), an employer may
not:
• Obtain, use or share any information maintained by group health
plan in connection with employment-related functions (such as drug
testing).
• Continue to collect and use health information in connection with
such programs.
Under HIPAA Medical Privacy Rules, it is important to have
firewalls between employees who administer group health
plan and employees who are involved in employment-
related functions.
©SHRM 2008 8

9. Federal and State Laws on Substance Abuse (cont’d)
Specifically on substance abuse testing:
• No comprehensive federal law regulates or prohibits testing by private
employers. State and local statutes may limit or prohibit workplace
testing.
• However, the Omnibus Transportation Employee Testing Act of 1991
requires drug and alcohol testing of safety-sensitive transportation
employees in aviation, trucking, railroads, mass transit, pipelines and
other transportation industries.
• The federal Drug-Free Workplace Act of 1988 applies to federal
contractors.
©SHRM 2008 9

10. Group Discussion: Federal and State Laws on Substance
Abuse
What federal laws pertain to substance abuse in the workplace?
Are there privacy concerns related to substance abuse testing?
How does the ADA pertain to substance abuse?
How is substance abuse handled under FMLA?
©SHRM 2008 10

11. Warning Signs of Substance Abuse
Typical warning signs of substance abuse at work are listed
below. No one sign should be taken as an indication of
substance abuse. Some or all signs could be indicative of a
problem and could constitute grounds for testing based
upon reasonable suspicion. A supervisor needs to discuss
his/her observations with HR before approaching or
confronting an employee.
• Personal Appearance – disheveled appearance, unsteady gait,
slurred speech, bloodshot or glazed eyes, odor of alcohol on
breath.
• Dependability - Monday/Friday absence pattern; increased
tardiness or failure to call in, frequent absences from work area;
missed deadlines.
©SHRM 2008 11

12. Warning Signs of Substance Abuse (cont’d)
• Declining Quality of Work:- Increased errors, work frequently needs
to be redone, inability to understand, follow through on complex
assignments, inability to carry out instructions, low productivity.
• Declining Attitude - Uncooperative; increased conflicts with co-
workers, customers, appears nervous, distracted, quick to anger.
Exhibits signs of paranoia such as blaming others.
• Judgment - Illogical reasons for decisions, violates policies and
procedures; takes inappropriate risk; inattentive to safety
procedures.
©SHRM 2008 12

13. Important Components of our Substance Abuse Policy
(Provide copies of your policy to all attendees and review all or
most important components. The following slides are based on
a standard substance abuse policy. You will want to review and
revise these to match your own policy or you may replace these
slides with the most important parts of your own policy.)
©SHRM 2008 13

14. Important Components of our Substance Abuse Policy
(cont’d)
The following are important components of our substance abuse
policy:
[Company Name] strictly prohibits the using, possessing, buying, selling,
manufacturing or dispensing an illegal drug and being under the
influence of alcohol at work
Employees found to be in violation of our substance abuse policy will be
subject to disciplinary action, including termination of employment
Violations of the policy may also constitute an illegal activity that may result
in the employee’s arrest and prosecution.
The company provides counseling services through our Employee
Assistance Program (EAP) or employees seeking substance abuse
assistance.
©SHRM 2008 14

15. Important Components of our Substance Abuse Policy
(cont’d)
Substance abuse testing includes:
• Pre-employment drug testing for applicants considered for work in
safety-sensitive positions.
• Illegal drug and alcohol testing based upon reasonable suspicion – This
includes testing “for cause" (i.e., post accident)” and may also be
required based on behavior, appearance, and performance. (This
testing must be recommended by the immediate supervisor and
approved by Human Resources.)
• Random testing - Employees are chosen at random by Human
Resources for testing on a quarterly basis.
• Retesting for applicants or current employees who request retesting
after a positive test. The cost of a retest which confirms the first test will
be covered by the applicant or employee.
©SHRM 2008 15

16. Role of the Supervisor in Identifying and Responding to Substance
Abuse in the Workplace
• Talk to the employee about our substance abuse policy.
• Keep track of employee work performance and document any change.
• Discuss with the employee specifics of unsatisfactory job performance,
communicate expectations and discuss consequences. At this stage, do
not make accusations of drug or alcohol abuse specifically as this could
violate the ADA.
• Following our policy, if there are obvious signs of substance abuse,
discuss observations with HR, and consider sending the employee for
testing.
• Follow up with appropriate support such as a referral to the Employee
Assistance Plan (EAP). Have the EAP maintain contact with the
employee and request documentation of meeting attendance. (Most
treatment programs will provide written verification of aftercare
attendance, as long as the employee has signed a release.)
©SHRM 2008 16

17. Group Discussion: Warning Signs of Substance Abuse, Important
Components of our Policy, and the Role of the Supervisor
What are some warning signs of a possible substance abuse
problem?
What are some of the important components of our policy?
What should a supervisor do if he/she suspects substance abuse?
What is the role of the supervisor in responding to substance
abuse?
©SHRM 2008 17

18. Summary
It is important to identify and respond to substance abuse in the
workplace because of the high costs of illegal drug and
alcoholism-related absenteeism, lost productivity, and
workplace injuries. In addition, identifying and responding to
workplace substance abuse helps employees who are trying to
recover from addiction and provides a safer workplace for
employees and customers.
Federal laws with provisions pertaining to workplace substance
abuse are the Americans with Disabilities Act, the Family and
Medical Leave Act, and the HIPAA Medical Privacy Rule. Laws
pertaining to substance abuse are Omnibus Transportation
Employee Testing Act for safety-sensitive transportation
employees and the Drug Free Workplace Act for federal
contractors. State and local statutes may limit or prohibit
workplace testing.
©SHRM 2008 18

19. Summary (cont’d)
Warning signs of substance abuse include changes in an
employee’s personal appearance and declining dependability,
quality of work, attitude, and judgment.
Important components or our substance abuse include
prohibitions, disciplinary action for violations, and counseling
services through our EAP.
Supervisor responsibilities include communicating our policy,
tracking employee work performance, documenting and
discussing changes with employees, discussing any suspicions
of substance abuse with HR, assisting with disciplinary action,
and following up with a referral to the Employee Assistance
Plan.
©SHRM 2008 19

20. Course Evaluation
Please be sure to complete and leave the evaluation sheet you
received with your handouts.
Thank you for your attention and interest!
©SHRM 2008 20