Drug and Alcohol Abuse Policy

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1 Rexnord Industries, Inc. (herein referred to as the Company ) has a strong commitment to its employees to provide a safe work environment and to promote high standards of employee health and performance. Consistent with the spirit and intent of this commitment, the Company has established a policy regarding drug and alcohol abuse. Further, the Company is committed to maintaining a drug-free workplace as required by The Drug-Free Workplace Act of Therefore, all employees are advised that remaining drug-free is a condition of continued employment with Rexnord Industries, Inc. Purpose To outline the procedures to be followed by each location in order to ensure that the safety and performance of employees is not impaired by alcohol, drugs or substance abuse. Applicability This policy shall apply to all salaried employees (full-time, part-time, exempt, and non-exempt employees) as well as to all applicants who have received a conditional offer of employment. Personnel who perform their services on Company property, as provided under a contract either directly or through the services of an outside firm, are required to abide by this policy. It is the responsibility of the contracting firm to ensure that its personnel are tested prior to working at Rexnord Industries. Drug or Alcohol Abuse It is the Company s policy that the following is prohibited and will result in discipline up to and including termination: the use, sale, possession, transportation, receipt, distribution or testing positive for illegal drugs or alcohol, or the abuse of drugs (prescription and/or non-prescription) while on work status, during work hours, on Company premises, operating or riding in Company vehicles. The Company will however provide an Employee Assistance Program (EAP), which will be available to counsel employees on illegal drugs, controlled substances, and alcohol, including the effects and consequences of such material on personal health, safety, and the work environment. The Company is willing to recognize and provide certain assistance to those employees whose use of alcohol or drugs may be the result of an illness such as alcoholism or chemical dependency. Accordingly, the Company encourages all employees who may have a problem with substance abuse or alcoholism to come forward and take advantage of the Company s assistance and referral sources in resolving the problem. Coming forward with a drug or alcohol abuse problem may not necessarily result in termination. However, an employee with a drug or alcohol abuse problem is required to comply with the individual treatment program outlined by the EAP and the requirements outlined in this policy. Employees found in violation of this policy risk termination of their employment. Right to Test/Search Page 1

2 Pre-employment Testing Any applicant who has been conditionally offered employment will be required to take a medical examination that will include a test for illegal drugs. Applicants shall be informed that testing will be part of the physical examination process by a printed notice with the employment application. Any applicant who tests positive on a confirmatory test and who does not refute the results through the MRO (Medical Review Officer) process in a timely and successfully way by explanation or retesting of the original sample will not be hired by the Company. Any applicant who refuses to submit to testing will be denied employment and will not be considered for employment in the future. Reasonable Cause Testing Where there is reason to suspect from an employee s appearance, odor, and/or behavior (including credible reports of policy violation) that he or she has violated this policy, the Company will require the employee to submit to a drug and alcohol test at the Company s expense as soon as possible after the Company acquires the information. The Company will transport the employee to a medical facility in order to have blood or urine samples drawn or a breath test administered. The employee will not be allowed to return to work until the results of the test are received. If the test is negative, the employee will be paid for their lost work time. The employee will be offered safe passage home from the medical facility or Company premises, at the Company s expense. Searches on Company Property The Company reserves the right to conduct searches of the company s premises, including work, areas, rest areas, parking lots, offices, company vehicles lockers, desks, and cabinets. The company also reserves the right to take custody of and submit for testing any item, article, or substance the company discovers during a search that appears to the company to be evidence of a violation the company s drug and alcohol policy or any other company policy, including policies prohibiting theft. Employees must use only company locks to secure company vehicles, lockers, desks, file cabinets and other company owned areas. Searches may be conducted at any time without advance notice and without employee consent. An employee who refuses to cooperate with such searches, or who violates any provisions of this Policy, will be subject to discipline up to and including discharge. The company reserves the right to conduct searches of an employee s possessions, such as briefcase, purse, lunch box, tool box, or motor vehicle while the employee is on company property or on duty. Before conducting a search pursuant to this paragraph, the company will tell the employee the reason for the search and request the employee s written consent to the search. The employee may be requested to empty his or her pockets for inspection of the contents. No search will be conducted if the employee refuses to consent in writing to the search, but the employee s refusal to cooperate with search efforts will subject the employee to discipline up to and including discharge. Page 2

3 Illegal drugs or other contraband discovered during a search will be confiscated and turned over to the authorities. If a search reveals an employee is in violation of the company s drug and alcohol policy, or any other company rule or policy, the employee will be subject to discipline up to and including discharge under the applicable policy. Post-Accident Testing The Company will require employees to submit to drug and alcohol testing following an accident. Any accident that involves injury or threat of injury to persons or damage to property or a near-miss which could have had a similar result will require all involved employees to be tested. Employees will be sent for drug and alcohol testing as soon as possible after the Company knows of such an accident and/or damage to property. An employee who is seriously injured and cannot provide a sample at the time of the accident will provide the necessary authorization for obtaining hospital reports and other documents that would indicate whether there were any controlled substances or alcohol in the employee s system. The affected employee(s) may return to work prior to receiving test results with the approval of the attending physician and/or the Company s authorized medical personnel. Testing After Layoff or Leave of Absence Any employee who has been called back to work from a layoff of or more than ninety (90) days or has returned to work from an unpaid leave of absence of more than ninety (90) days will be required to submit to a drug and alcohol test. Employees who return in a timely fashion from an FMLA leave are exempted. Conviction of a Drug-Related Offense Employees who are convicted of a drug-related offense in the workplace will be considered in violation of this Policy and will be subject to appropriate disciplinary action, depending on the nature of the offense. As a condition for continued employment, an employee who is convicted of such an offense must notify his or her supervisor within five (5) days after the conviction. (Under the Drug-Free Workplace Act of 1988, the Company is required to: (1) notify a federal contracting agency of any such criminal conviction within 10 days of learning of the conviction and (2) within 30 days, take appropriate disciplinary action or require the convicted employee to participate in a drug rehabilitation program.) Follow-up Testing Any employee who has been required by the Company to complete a drug and/or alcohol evaluation, counseling, rehabilitation or treatment program will be required to undergo unannounced drug and/or alcohol testing during such evaluation, counseling, rehabilitation or treatment program and for up to twenty four (24) months after returning to work. Page 3

4 Any employee who tests positive on a confirmatory test will be required to undergo unannounced drug and/or alcohol testing during any evaluation, counseling, rehabilitation or treatment program and for up to twenty four (24) months after returning to work. Cause is not required for follow-up testing. Specimen Collection and Testing Procedures Collection Procedures and Employee Privacy To the extent practicable, medical personnel will supervise the collection of specimens (i.e., urine, blood, etc.) for testing. Any employee who attempts to alter or substitute a specimen or otherwise undermine the integrity of the process will be subject to immediate discharge. Testing Procedures Only laboratories that have been approved for drug and alcohol testing by the governing federal or state authority will test specimens. Specimens will be tested at the detection levels established by the governing federal or state authority ( impairment ) to the extent applicable. In the absence of federal and/or state standards, the Company will apply cutoffs established by the Department of Health and Human Services or the Department of Transportation regulations in consultation with medical professionals. The Company will rely only on positive test results that have been confirmed by gas chromatography/mass spectrometry or, if applicable, the method or methods of analysis established by governing law ( confirmatory tests ). The Company will pay for any drug and/or alcohol tests that it requests or requires. Refusal to Comply with Policy Failure to comply with this policy, including testing requirements, will result in immediate discharge. This includes the outright refusal of a test, causing delay in the administration of a test or an attempt to undermine the integrity of the test. Test Results and Retesting Consequences of Testing Positive for the First Time Any employee who tests positive on a confirmatory test for the first time and who does not timely and successfully refute the test results by explanation or retesting ( first-time failing employee ) will be required to participate in a drug and alcohol evaluation, counseling, rehabilitation, and/or treatment program (the treatment program ) as recommended by professionals. In addition, first-time failing employees may be subject to discipline, suspension, transfer, demotion or other personnel action short of discharge. They will also be required to sign a Last Chance Agreement (See Attachment A) before returning to work and will be subject to follow-up testing described in IV (G). Page 4

5 First-time failing employees will be discharged who either: 1. Fail to appear for Company scheduled chemical dependency evaluations; 2. Refuse to participate in recommended treatment programs; 3. Fail to successfully complete recommended treatment programs; or 4. Fail to submit to required follow-up testing Time lost by first-time failing employees during participation in a treatment program that requires them to miss work will be governed by the Company s applicable sickness, disability, absence and/or other leave-of-absence policy, in accordance with applicable law. Consequences of Testing Positive the Second Time Any employee who tests positive on a confirmatory test for the second time from the first confirmatory test and who does not timely and successfully refute the test results by explanation or retesting will be discharged. Company-Sponsored Events Management reserves the right to allow the consumption of alcohol beverage, in moderation, at some Company-Sponsored events involving employees, customers, suppliers or affiliated companies. Company employees are, however, expected to exercise reasonable judgment at all times in the use of alcohol authorized under this section and are expected to return to work unimpaired. The Company disclaims any responsibility for supervising employee alcohol consumption and for action taken by any employee while under the influence of alcohol. Policy Communication To ensure that all job applicants and current employees are aware of the Drug and Alcohol Policy, information will be distributed as follows: a. Notices will be posted in conspicuous places advising all applicants and employees of the Drug and Alcohol Policy. b. All newly hired and current employees shall be issued a Drug and Alcohol Policy. All employees must sign an acknowledgment form that they have received the Policy and understand that they are required to comply with its terms. (See Employment Applicant Acknowledgement) The signed statement will be maintained in the employee s personnel file. Drug and Alcohol Education Information such as pamphlets will be provided periodically in an effort to inform employees about the problem for drug and alcohol abuse and resources available for assistance. MISCELLANEOUS Page 5

6 This policy is subject to applicable federal, state, and local laws and regulations. Nothing contained in this policy is intended to create any legally enforceable rights and the Company reserves the right to change and interpret this policy at any time; and its interpretation and application shall be final and binding. Page 6

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