Tennessee Drug-Free Workplace Program – Workers’ Comp Ins. Discount

Introduction

Tennessee law provides strong incentives for employers that implement and maintain a certified Drug-Free Workplace Program. Under T.C.A. §§ 50-9-103 – 50-9-111 and the rules of the Department of Labor, Division of Workers’ Compensation (Tenn. Comp. R. & Regs. 0800-02-12), employers must adopt a written policy, provide employee and supervisor training, use certified laboratories, and follow strict testing and confidentiality standards.

When certified, employers qualify for a 5% workers’ compensation premium credit under T.C.A. § 50-6-418, provided the program is renewed annually and remains in compliance.

Together, these statutes and rules establish the framework for a defensible, legally compliant drug-free workplace that reduces costs, promotes safety, and strengthens employer protections.

Benefits of Tennessee's Drug-Free Workplace Program

Workers’ Comp Premium Credit – Employers certified under T.C.A. §§ 50-9-103 – 111 and Chapter 0800-02-12 qualify for a 5% discount on workers’ compensation insurance premiums.
Reduced Claim Costs – Proper testing and training reduce substance-related incidents, lowering injury rates and overall claim expenses.
Defensible Employment Actions – Compliance with Tennessee’s statutes and rules strengthens an employer’s legal standing when denying or contesting claims linked to intoxication.
Safer Workplace – A structured drug-free policy, combined with employee and supervisor education, promotes safety and accountability on the job.

Program Requirements in Tennessee (At a Glance)

Here’s a quick comparison chart based on Tennessee Code Annotated §§ 50-9-103 through 50-9-111 (Drug-Free Workplace Program) and Department of Labor Rule 0800-02-12, which establish program standards, premium credit eligibility, and testing requirements.

Category	Requirement
Statutory Authority	Tennessee Code Annotated §§ 50-9-103 – 50-9-111; Department of Labor Rule 0800-02-12 (Drug-Free Workplace Program).
Premium Credit	5% workers’ comp premium credit for certified employers.
Employer Eligibility	Any employer maintaining a written policy and complying with Rule 0800-02-12.
Notice & Posting	Written policy must be distributed to employees and posted at the workplace. Employers must provide 60 days written notice to existing employees before beginning testing under a certified program.
Testing Types	Job applicant (post-offer), reasonable suspicion, post-accident, random (statistically valid selection), routine fitness-for-duty, return-to-duty, and follow-up (up to 2 years).
Alcohol Cutoffs	Safety-sensitive: =0.04 g/dL BAC; Non-safety-sensitive: =0.08 g/dL BAC.
Panels & Cutoffs	Mandatory SAMHSA 5-panel: marijuana/THC, cocaine, opiates, amphetamines, PCP. Confirmatory testing (GC/MS or equivalent) required.
Medical Review Officer (MRO)	All test results (negative and positive) must be reported to and verified by an MRO before release to the employer, consistent with DOT/SAMHSA standards.
Employee Training	One (1) hour per year on substance abuse awareness, company policy, and available assistance resources.
Supervisor Training	Two (2) hours first year; one (1) hour annually thereafter on recognizing signs of abuse, documentation, and referrals for testing.
Follow-Up Testing	Required for up to two years after rehab or reinstatement; must be unannounced and periodic.

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 for Tennessee

Under T.C.A. §§ 50-9-103 – 50-9-111 and DOL Rule 0800-02-12, certified Tennessee Drug-Free Workplace Programs must include the following testing types:

Pre-Employment: Testing after a conditional job offer, before final hire.
Reasonable Suspicion: Based on observable behaviors, appearance, speech, or documented performance issues.
Post-Accident / Post-Injury: Required if an accident results in injury, property damage, or a workers’ comp claim.
Random Testing: Permitted and must follow a nondiscriminatory, statistically valid selection process.
Routine Fitness-for-Duty: Allowed if part of regularly scheduled physical exams.
Return-to-Duty: Required before reinstatement after a violation or rehabilitation.
Follow-Up Testing: Conducted on a periodic, unannounced basis for up to two years after treatment or reinstatement.

How to Apply for Premium Credit in Tennessee

Develop a Written Policy - Draft a compliant Drug-Free Workplace policy covering all required elements: job applicant testing, reasonable suspicion, post-accident, random, return-to-duty, and follow-up testing. Policy must also address confidentiality, employee rights, and alcohol/drug cutoffs.

Enroll with the Tennessee Department of Labor - File the Drug-Free Workplace Program Application (DOL-DFWP-1) with the Division of Workers’ Compensation. Employers must certify their compliance with the statutes and Rule 0800-02-12.
Implement Program Requirements - Begin testing through a certified laboratory, designate an MRO, train supervisors (two hours first year, one hour annually thereafter), and provide employee education.
Submit Proof to Insurer - Provide your insurer with the certificate of compliance issued by the Tennessee Department of Labor. The insurer then applies the 5% workers’ comp premium credit to your policy.
Renew Annually - Employers must recertify each year by filing the renewal form and verifying continued compliance with training, testing, and policy requirements.

Why Choose ASAP Programs for Compliance?

Navigating Tennessee’s Drug-Free Workplace requirements can be complex from drafting a compliant policy to managing supervisor training, MRO review, and annual certification. ASAP Programs makes the process simple and defensible by providing:

Policy Development – We create and customize a written policy that meets T.C.A. §§ 50-9-103–111 and Rule 0800-02-12 requirements.
Testing Coordination – We establish partnerships with certified labs, implement proper chain-of-custody procedures, and medical review officer review of all test results.
Employee Education & Supervisor Training – We provide training courses that meet the mandated two-hour initial and annual one-hour follow-up requirements for supervisors.
Certification Assistance – We handle paperwork with the Tennessee Department of Labor and coordinate with your insurer to secure the 5% workers’ comp premium discount.
Ongoing Compliance Support – Annual updates, renewal support, and policy revisions to keep your program valid, defensible, and stress-free.

Ready to qualify for Tennessee’s 5% workers’ comp discount?

Contact ASAP Programs today to get started with a fully compliant, certified program.

Last updated: September 2025