Alabama Drug-Free Workplace Program – Workers’ Comp Insurance Discount

Introduction

Alabama employers can qualify for a 5% reduction in workers’ compensation insurance premiums by establishing and certifying a Drug-Free Workplace Program. This program, authorized under Code of Alabama §§ 25-5-330 to 340, outlines strict requirements for policies, testing, education, and employee rights.

Below you’ll find a complete overview of program benefits, statutory requirements, testing rules, and the application process.

Benefits of Alabama’s Drug-Free Workplace Program

5% workers’ comp premium discount for certified employers
Safer, more productive workplace with fewer accidents
Demonstrates compliance with Alabama workers’ comp law
May reduce employer liability in workers’ comp claims
Supports employee well-being and substance abuse prevention

Program Requirements in Alabama (At a Glance)

Here’s a quick comparison chart based on Alabama Code § 25-5-330 through 340 and guidance from the Alabama Department of Labor:

Category	Alabama Requirements
Discount Amount	5% workers’ compensation premium credit
Statutory Authority	Ala. Code §§ 25-5-330 – 340 (Drug-Free Workplace Program)
Admin Agency	Alabama Department of Labor – Workers’ Compensation Division
Employer Eligibility	Voluntary program; any insured employer may apply
Required Testing Triggers	• Pre-employment (post-offer) • Reasonable suspicion • Post-accident (if injury requires medical treatment) • Routine fitness-for-duty • Follow-up after rehab
Random Testing	Random testing is permitted if included in the employer’s written policy and applied consistently, but it is not a required trigger under Ala. Code §§ 25-5-330 to 340.
Specimen Types Allowed	Tissue, blood, breath, urine, or other bodily products
Initial + Confirm Testing	Screening test required; positive results must be confirmed using GC/MS or equivalent
Testing Panels & Cutoffs	Cutoffs are not specified in state law (federal standards may apply by default). State statute defines "drug" to include 10 specific substances (amphetamines, cannabinoids, cocaine, PCP, methadone, methaqualone, opiates, barbiturates, benzodiazepines, propoxyphene)
Alcohol Testing	Permitted (breath/blood); must meet same chain-of-custody and confirmation standards
Medical Review Officer (MRO)	Required – statute references MRO role; confirms and reviews positive results
Employee Education	Minimum 1 hour substance abuse education every 6 months
Supervisor Training	Minimum 2 hours initial training on substance abuse recognition & response
Notice Requirements	• 60 days’ notice before implementing new program • 5 business days’ written notice for positive test results
Confidentiality	Strict confidentiality required; positive results handled per statute
Certification Process	Submit certification to Alabama Dept. of Labor; notify insurance carrier
Renewal	Certification valid up to 4 years; must recertify annually with Department of Labor and notify insurer annually
Marijuana Notes	Recreational marijuana remains illegal in Alabama. The 2021 Darren Wesley “Ato” Hall Compassion Act created a limited medical cannabis program, but employers are not required to accommodate its use. Employers may enforce zero-tolerance policies, and marijuana is treated like any other controlled substance under the Drug-Free Workplace Program and workers’ comp law.

Disclaimer: This overview is provided for informational purposes only. Employers should review state requirements and consult with legal counsel or their insurer to ensure compliance.

Detailed Testing Requirements

Alabama law requires drug and alcohol testing in the following scenarios:

Pre-employment (post-offer) – testing of applicants by job classification.
Reasonable suspicion – where there is evidence of substance use.
Routine fitness-for-duty – may be applied to entire classifications.
Post-accident – mandatory when an accident results in lost time.
Follow-up – after rehabilitation, if required.

All testing must follow chain-of-custody and confirmation procedures. Initial positives require confirmation testing, and all results must remain confidential.

How to Apply for the Discount in Alabama

Prepare your program – Draft your written policy, training plan, and testing procedures.
File certification – Submit documentation to the Alabama Department of Labor, Workers’ Compensation Division.
Notify your carrier – Provide written proof to your workers’ comp insurer.
Maintain compliance – Recertify annually to keep the 5% premium discount.

Why Choose ASAP Programs for Compliance?

Implementing a compliant program can be complex — from testing coordination to policy development and annual renewal support. ASAP Programs simplifies the process with:

Nationwide drug testing & background screening solutions
Compliance-ready policies and training resources
End-to-end program administration and documentation

Ready to qualify for Alabama’s 5% workers’ comp discount?
Contact ASAP Programs today and let us help you implement a certified program.

Last updated: August 2025