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Drug-Free Workplace Programs FHM believes a drug-free workplace is an important component of an effective Risk Management Program. Providing drug-free programs is part of our continuing commitment to high-quality service and reducing workers compensation costs. It s part of our policy to do more. This section contains information about programs available to FHM policyholders. For information about state-certified programs that may include premium credits, please call Total Compliance Network at 800-881-4826. For more information about FHM s Drug-Free Workplace programs, visit us online at www.fhmic.com or call, Ext. 6401, or 6424. Drug-Free Workplace Program Characteristics A workplace that is drug-free can be an effective tool for maintaining workplace safety. The Drug-Free Workplace Program has several important advantages including: -Drug-free determination is a major factor in hiring qualified applicants. -There is a required drug test any time an accident or injury occurs. Positive test results can lead to denial of workers compensation benefits to employees. -A drug-free workplace will deter the use of alcohol and drugs in the workplace, leading to a safer, more productive environment. -If your company is a state-certified drug-free workplace, a positive post-injury test for drugs and/or alcohol is grounds for an automatic denial of future workers compensation benefits for the employee. -May reduce an employer s liability for drug-related workplace accidents. -May reduce an employer s claims experience and exposure. -Sends a strong zero tolerance message to employees.

Drug-Free Workplace Programs Employers can select from two Drug-Free Workplace Programs: -The state-certified Drug-Free Workplace Program -Requirements for state-certified drug-free workplace programs vary by state. For information on your state s requirements, please call Total Compliance Network at 800-881-4826. -Post-Injury Drug Testing Program -Is set up one time and continues indefinitely without annual recertification. -Does not require pre-employment drug screening. -Includes any initial drug-testing fee as part of the reported claim cost. (When treated by an FHM-approved provider.) -All injured employees are tested for drugs/alcohol after every workplace injury. -Claims by employees testing positive are investigated and accepted or denied on a case-by-case basis. -The program requires a completed Consent To Employee Drug and/or Alcohol Testing form from each employee (to be retained in the employee s personnel file). This helps ensure your employees know and understand your zero-tolerance policy. If you are a state-certified Drug-Free Workplace, you do not have to sign up for the Post-Injury Drug Testing Program as long as you are satisfied with your current program provider. For more information, call, Ext. 6401 or Ext. 6424.

To Initiate a Post-Injury Drug Testing Program States Outside Florida. As an FHM policyholder you are automatically enrolled in the Post-Injury Drug Testing Program. You should have all current and future employees complete the Consent to Employee Drug and/or Alcohol Testing form, place the original in the employee s personnel file and make a copy to give to the employee. The initial drug-testing costs for Post-Injury Drug Testing are charged as a medical expense to the reported workers compensation claim. You will automatically receive chain-of-custody forms in the mail. For all injuries, the injured employee is required to take a chain-of-custody form* with them to the medical facility. For additional forms and questions on administering the program, please contact Total Compliance Network at 800-881-4826. Florida Only. As an FHM Florida policyholder, you may elect to participate in the Post-Injury Drug Testing Program. Complete the Application for Post-Injury Drug Testing and fax to FHM at 407-373-6441 to enroll. After enrolling, you should have all current and future employees complete the Consent to Employee Drug and/or Alcohol Testing form, place the original in the employee s personnel file and make a copy to give to the employee. You will then receive chain-of-custody forms in the mail. For all injuries, the injured employee is required to take a chain-of-custody form* with them to the medical facility. For additional information, please contact Total Compliance Network at 1-800-881-4826. *Please note: A second chain-of-custody form is always required if you would like to request a blood alcohol test. If there is reasonable suspicion that the employee was under the influence of alcohol at the time of the accident, please indicate on the Introductory Letter to Physician that you are requesting a blood alcohol test in addition to urinalysis. Be sure to send the second chain-of-custody form with the employee for initial treatment. The employee should not drive themselves for treatment if you suspect alcohol use. Provide transportation to the medical facility. The employee will receive a receipt for each test performed. Please have them bring it back for you to make a copy for your own file. To Initiate a State-Certified Drug Testing Program To initiate a state-certified Drug-Free Workplace Program, please contact Total Compliance Network at 800-881-4826.

Should Your Company Be A Drug-Free Workplace The answer is not easy. The main concern of many clients is that a drug-free program will turn away prospective new hires. Other concerns are the cost of testing and the inevitable administrative hassles. But the following statistics should be considered when deciding whether to be a drug-free workplace. An employee who uses drugs versus an employee who is drug-free: -80% of internal embezzlement, fraud and pilferage in the workplace is drug related. -73% of all drug users are employed. -300% more sick benefits used by substance abusers. -250% more absences of 8 days or more. -220% more requests for early dismissal or time off. -300% more often late for work. -300% more often involved in job-related accidents. -500% more likely to file a Workers Compensation claim. -Uses 2.5 times more medical benefits. Did You Know that 70% of Illicit Drug Users Work Full Time? Information released by the Substance Abuse and Mental Health Services Administration (SAMHSA) found that most drug users age 18-49 are employed full time! That means 6.3 million illegal drug users and 6.2 million heavy alcohol users are in today s full-time work force. Drug use on the job is costly. It contributes to an untold number of workplace accidents and loss of productivity. A positive post-accident drug and/or alcohol test results in a denial of most workers compensation claims. A claim was recently denied after a positive post-accident drug test where the insurer had established a preliminary loss reserve of $150,000.. A $150,000 claim will have a serious impact on most businesses.

Should Your Company Be A Drug-Free Workplace More and more businesses are realizing the long-term benefits of being a drug-free workplace - K mart, Wal-Mart, Burger King, McDonald s, Disney World, etc., have drug- free policies. In fact, most major companies now require employees to be drug-free as a condition of employment. Drug users who are not job candidates at these businesses will seek out those employers that do not have such a program. Those employers without a drug-free program will be accepting those job applicants for employment who are rejected by the drug-free employer, and assuming the associated costs and liability involved with such employees.