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  • Michael Burk

Worker's Compensation Premium Discounts in a Drug-Free Workplace

Updated: Mar 19, 2019

How Establishing A Drug-Free Workplace Policy and Testing Program Can Help Your Business Save On Workerʻs Comp Premiums

Running a business in today's Hawaii is a complex, costly, and often difficult process. Times change, and so do laws, regulations, and insurance premiums in order to cover your business from inherent and unseen risk factors. Depending on your companyʻs designation, Worker's Compensation insurance may be required. Furthermore, with no-fault insurance rules, Hawaii employers cannot require employees to contribute to the companyʻs Worker's Compensation insurance costs. Most businesses will have to account for such premiums in their bottom line.

Financial Benefits of a Drug-Free Workplace Policy and Testing Program

Fortunately for Hawaii business owners, establishing a Drug-Free Workplace policy and program can reduce Worker's Compensation premiums up to 5%, depending on the provider. However, submitting a complete policy and outline of a comprehensive testing program to the insurance provider IS required to qualify for a discount. Establishing pre-employment, random, and reasonable suspicion testing will provide peace of mind and protection from the damage and financial liability that drug use among employees could cause.

How to Establish A Policy and Program

Establishing a Drug-Free Workplace policy and testing program is a time consuming process, but can be simplified with proper help. As a Federally certified Third Party Administrator of Drug and Alcohol-Free Workplace Programs, we establish compliant and thorough policies for companies large and small, and provide ongoing support and training on how to keep policies and programs complaint and relevant when company situations and state laws change.

How To Handle Necessary Policy Changes

With State medicinal (and potentially recreational) Marijuana decriminalization, as well as growing Meth and Opioid use, Hawaii Drug-Free Workplace policies and programs are another area where the changing of times and laws can be frustrating. Many established policies do not outline the rules and expectations for such changes, but changes can easily be made to policies to cover such concerns. Establishment of new policy rules and by-laws is as easy as providing your employees a copy of the updated policy, and having them sign off on it as an agreement.

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