How Drug Testing in the Construction Industry Affects Your Work Comp Costs

Here in Texas, it has been difficult to influenceother factors may and will also play into this
employers to implement drug testing in thecalculation.
workplace. In the construction industry, it has5. Safety is the number one reason why
been even more difficult. As employees comeemployers drug-test their employees. The best
and go so rapidly, employers fail to recognize theemployers drug-test job applicants. This enhances
benefits of drug testing. According to Jonathanthe employer's image because current employees
Gerber of Cornell University, a new study reveals;understand the employer's commitment to safety.
"construction companies that drug test appear toDrug-testing job applicants also deters applicants
be successfully reducing workplace injuries". Drugthe use and abuse drugs and alcohol.
testing was unheard of twenty years ago. Recent6. Cost is the number one reason that employers
studies have estimated that as high as 49% ofdo not drug-test. Perceived exposure to legal
employers nationwide have implemented someliability is the other prime reason. Here's the
form of drug testing.reason for the legal liability concern. If you commit
The incidence of high numbers of alcohol and drugto drug testing, you must drug-test all employees.
abuse in the construction industry along with theFailure to drug-test even one employee can result
high risk of workplace injuries have caused mostin additional liability exposure if that one employee
construction companies in Texas to at least givecauses harm to property or another employee.
lip service to drug testing. Many insuranceOnce you commit to drug testing you have to
companies now require that the constructionkeep drug testing.
company submit their employee manual regarding7. You will find that virtually all large construction
safety to qualify for insurance.companies drug test. They have the resources to
Jonathan Gerber's study entitled "An Evaluation ofcommit to faithfully drug test. Smaller companies
Drug Testing in the Workplace: A Study of thewith fewer resources are more likely to avoid
Construction Industry," found the following:drug testing. The real problem is that job
1. Within two years of starting a drug-testingapplicants know who drug-tests and who doesn't
program, the injury rate had decreased by overdrug-test. For this reason, employees with abuse
50%.problems gravitate to these companies.
2. If you decrease injuries, you will in almostSo is drug-testing being to costly? In addition to
always reduce the workers' compensationthe saving from the reduction to your experience
experience-rating modification factor. Companiesmodifier, you reduce your exposure to general
implementing drug-testing programs experiencedliability claims. If your employee is intoxicated or
greater reductions in the experience-ratinghigh on the job, he may cause damage to either
modification factor than those that did nota third party's property or to the third party or
implement drug testing. Over 70% of employersanother employee. This could be a negligence
with drug-testing programs said that the benefitsclaim. Texas lawyers like general liability claim
of drug testing outweighed the cost of thelitigation more than work comp litigation. They also
program.like any type of negligence claim. The work comp
3. A drug-testing program that is fully supportedsystem took away lump sum settlements years
by the employer with benefit the employer inago, but this is not true in general liability claims.
three ways: lower workers' compensation costs,The small employer is putting his/her business at
greater safety in the workplace and a betterrisk by not drug-testing. I have seen high
quality of job applicants.insurance costs or the inability to obtain insurance
4. Because of the nature of how the workers'cause many small construction companies to go
compensation experience modifier is calculated,out of business. Drug testing is not too costly.
the first three years after the drug-testingProperly administrated, drug testing can put more
program has started will experience the greatestmoney to the bottom line.
reduction in the experience modifier. Remember