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

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Introduction

Kentucky’s Drug-Free Workplace Program is governed by KRS §§ 337.325–337.335 (drug/alcohol testing authority) and 803 KAR 25:280 (certified program rules). Employers that implement a compliant program, including a written policy, employee education, annual supervisor training, an EAP, 11-panel drug testing through a SAMHSA-certified lab, random testing, and MRO review, can apply for certification through the Department of Workers’ Claims to receive a 5% workers’ comp premium credit. Certification must be renewed annually and strengthens employer defenses under KRS § 342.610(3) (workers’ comp intoxication defense) and KRS § 341.370(6) (unemployment misconduct disqualification).

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

Benefits of Kentucky’s Drug-Free Workplace Program

  • Workers’ Comp Premium Credit: Employers with a certified program receive about a 5% premium discount through their insurer.

  • Lower Claim Costs: Certification helps deter substance-related incidents, reducing workplace injuries and claim frequency.

  • Clear Legal Framework: Kentucky law (KRS §§ 337.325–337.335 and 803 KAR 25:280) establishes program elements including policy, EAP, education, testing, and confidentiality.

  • Defensible Employment Actions: Mandatory MRO review, chain-of-custody, and confirmatory testing strengthen the employer’s position when using intoxication as a workers’ comp defense.

  • Improved Workplace Culture: Demonstrates a commitment to safety, compliance, and employee well-being.

  • Comprehensive Coverage: Certified programs require specific triggers (post-offer, random, reasonable suspicion, post-accident, follow-up) and a minimum 11-panel test, providing consistent and legally defensible practices.

Program Requirements in Kentucky (At-a-Glance)

Here’s a quick comparison chart based on Kentucky Revised Statutes (KRS) §§ 337.325–337.335 (Workplace Drug and Alcohol Testing authority) and 803 KAR 25:280 (Certified Drug-Free Workplace Program regulation), promulgated under KRS 304.13-167, with guidance from Kentucky workers’ compensation insurers’ premium credit programs.

Category
Kentucky Requirements
Statutory Authority
KRS §§ 337.325–337.335 (drug/alcohol testing authority) and 803 KAR 25:280 (Certified Drug-Free Workplace Program), promulgated under KRS 304.13-167.
Certification & Administration
Certification handled by Kentucky Department of Workers’ Claims (DWC). Employers must submit Form DFW (Affidavit of Compliance) and renew annually to maintain status.
Program / Discount
Certified employers receive a 5% workers’ compensation premium credit once insurer verifies certification.
Written Policy & Posting
Written policy required; must be distributed to all employees and posted at the workplace. Must include prohibited conduct, testing triggers, confidentiality, disciplinary actions, EAP info, and appeals process.
Employee Education
Required at program rollout, for new hires within 30 days, and annually thereafter. Must cover substance abuse dangers, employer policy, EAP services, and testing procedures. No minimum time duration specified.
Supervisor Training
Supervisors must receive at least 30 minutes of training annually on recognizing signs of impairment, documentation, reasonable-suspicion testing procedures, and referral to EAP.
Employee Assistance Program (EAP)
Mandatory. Must provide assessment, short-term counseling, referral, and follow-up services for employees with substance issues.
Required Test Triggers
Post-offer (pre-employment), random (statistically valid and nondiscriminatory), reasonable suspicion, post-accident (off-site medical treatment), and follow-up (quarterly for one year after rehab or re-entry).
Specimens & Lab Standards
Urine required for drugs and breath for alcohol (other specimens may be approved by DWC). Testing must use SAMHSA/NLCP-certified laboratories and follow chain-of-custody procedures.
Panel & Cutoffs
Minimum 11-panel test required (amphetamines, cannabinoids/THC, cocaine, opiates, PCP, benzodiazepines, propoxyphene, methaqualone, methadone, barbiturates, synthetic narcotics). Alcohol maximum acceptance is 0.04 BAC (breath).
Medical Review Officer (MRO)
Mandatory. All results must be reviewed by a licensed MRO using HHS MRO Manual procedures before employer action is taken.
Confirmation
All initial positives must be confirmed by a method of equal or greater accuracy (e.g., GC/MS) prior to adverse action.
Employee Notification & Retest
Employees must be notified of positive results in writing and given an opportunity to discuss or request a retest of the original sample at their own expense.
Confidentiality
Test results and related information must be kept confidential and disclosed only with consent or as required by law.
Employer Defenses
KRS § 342.610(3) allows denial of workers’ comp benefits if intoxication directly caused the injury. KRS § 341.370(6) classifies working under the influence as misconduct, disqualifying unemployment benefits.
Renewal & Recordkeeping
Annual renewal with DWC required. Employers must keep records of policy distribution, training, and testing for compliance verification.

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 Practices (Kentucky)

Certified programs under 803 KAR 25:280 must include the following testing triggers:

  • Post-Offer / Pre-Employment: Drug and alcohol testing after a conditional offer.

  • Random Testing: Statistically valid, non-discriminatory selection process.

  • Reasonable Suspicion Testing: Based on specific, documented observations of appearance, behavior, speech, or odors.

  • Post-Accident Testing: Required when an accident results in off-site medical treatment.

  • Follow-Up Testing: At least quarterly for one year following rehabilitation or re-entry after a violation.

How to Apply for Premium Credit

  1. Create Your Program – Draft a written policy meeting KRS §§ 337.325–337.335 and 803 KAR 25:280 requirements, including EAP, employee education, supervisor training, testing triggers, confidentiality, and consequences.

  2. Implement & Communicate – Provide policy and training to employees, set up SAMHSA/NLCP-certified lab testing, random selection process, and MRO review.

  3. Apply for Certification – Submit Form DFW (Affidavit of Compliance) and supporting documentation to the Kentucky Department of Workers’ Claims; renew annually to maintain certified status.

  4. Request Insurer Credit – Once certified, notify your workers’ comp carrier to have the 5% premium credit applied to your policy.

Why Choose ASAP Programs for Compliance?

Implementing a certified program under 803 KAR 25:280 can be complex, from policy drafting to annual re-certification. ASAP Programs simplifies the process by handling every step:

  • Policy Development: We draft a written policy that satisfies KRS §§ 337.325–337.335 and 803 KAR 25:280, including EAP, training, confidentiality, and disciplinary components.

  • Testing Program Setup: We coordinate SAMHSA/NLCP-certified lab services, random selection processes, and ensure MRO review of all positive results.

  • Education & Training: Provide employee education materials and help deliver the 30-minute annual supervisor training required by regulation.

  • Certification & Renewal: Prepare and file Form DFW with the Kentucky Department of Workers’ Claims, track renewal dates, and maintain compliance documentation.

  • Carrier Coordination: Notify your workers’ comp insurer so the 5% credit is applied once certification is confirmed.

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Ready to qualify for Kentucky’s premium credit?
Contact ASAP Programs today and let us help you implement and maintain a fully compliant, certified Drug-Free Workplace Program.

Last updated: August 2025

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