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

Introduction

Virginia promotes drug-free workplaces through both insurance incentives and public contract requirements. Under Va. Code § 65.2-813.2, insurers must offer employers a workers’ compensation premium discount (typically up to 5%) if they implement and maintain a compliant Drug-Free Workplace Program. While the law leaves specific program elements to insurers, most require a written policy, employee notice, testing procedures, supervisor training, and use of SAMHSA-certified labs.

For employers bidding on or performing state contracts valued at $10,000 or more, Va. Code § 2.2-4312 requires contractors to certify and maintain a drug-free workplace. This includes posting notices, prohibiting the unlawful manufacture, distribution, dispensation, possession, or use of controlled substances or marijuana, and ensuring subcontractors also comply.

In addition, Va. Code § 65.2-306 provides a workers’ compensation defense for employers when an injury is caused by intoxication, and Va. Code § 18.2-266 (the DUI statute) is often used to reference impairment levels for alcohol. Together, these provisions encourage safe and compliant workplaces, protect employers from costly claims, and offer financial incentives for maintaining drug-free policies.

Benefits of Virginia's Drug-Free Workplace Program

Workers’ Comp Premium Credit – Employers who implement a compliant program under Va. Code § 65.2-813.2 may receive up to a 5% workers’ compensation premium discount, as determined by their insurer.
Safer, More Productive Workplaces – Reducing substance-related incidents lowers accidents, improves productivity, and strengthens workplace culture.
Workers’ Comp Defense – Under Va. Code § 65.2-306, employers may deny claims if intoxication is proven to be the cause of injury, helping control costs.
Public Contract Eligibility – Compliance with Va. Code § 2.2-4312 is mandatory for contractors with state contracts over $10,000, ensuring eligibility to bid and retain public work.
Legal Protection & Consistency – Incorporating controlled substances defined under Chapter 18.2 and Title 54.1 provides clarity, defensibility, and alignment with state law.
Flexibility in Program Design – Because specific program elements are left to insurers, employers can often tailor their policy (while still meeting notice, testing, and confidentiality requirements) to fit workforce needs.

Program Requirements in Virginia (At a Glance)

Here’s a quick comparison chart based on Virginia Code § 65.2-813.2 (Drug-Free Workplace Premium Credit) and related provisions under § 65.2-306 (workers’ comp intoxication defense) and § 18.2-266 (alcohol/drug levels), with guidance from the Virginia Workers’ Compensation Commission.

Category	Requirement
Statutory Authority	Workers’ Comp Premium Credit: Va. Code § 65.2-813.2. Public Contracts: Va. Code § 2.2-4312 (Virginia Public Procurement Act). Workers’ Comp Defense: Va. Code § 65.2-306 (intoxication defense). Alcohol reference: Va. Code § 18.2-266 (DUI statute, 0.08 BAC).
Premium Credit	Up to 5% workers’ comp premium discount offered by insurers to certified employers under § 65.2-813.2.
Employer Eligibility	Any Virginia employer may apply through its insurer for the premium credit. Public contractors with contracts over $10,000 must maintain a drug-free workplace under § 2.2-4312.
Notice & Posting	Written policy distributed to employees and posted. Contractors must also include drug-free workplace language in solicitations and contracts, and flow down requirements to subcontractors.
Testing Types	Insurer-driven, but typically include: job applicant (post-offer), reasonable suspicion, post-accident, random, routine fitness-for-duty, return-to-duty, and follow-up.
Alcohol Cutoffs	No workplace-specific cutoff in statute. Insurers typically adopt ≥0.08 BAC (from DUI law § 18.2-266), and some may require ≥0.04 BAC for safety-sensitive roles.
Panels & Cutoffs	Most insurers require SAMHSA 5-panel (marijuana/THC, cocaine, opiates, amphetamines, PCP) with federal cutoffs and GC/MS confirmation. Additional drugs may be included if disclosed in policy.
Medical Review Officer (MRO)	Insurers generally require all results (negative and positive) to be verified by an MRO, consistent with SAMHSA/DOT standards.
Employee Education	Insurers may require annual employee awareness education on substance abuse, policy details, and assistance resources.
Supervisor Training	Insurers often require two hours first year, one hour annually thereafter, covering signs of substance abuse, reasonable suspicion, and documentation.
Follow-Up Testing	Periodic, unannounced follow-up testing for employees returning after violation or rehabilitation (often for up to two years, per insurer standards).

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 Virginia

Virginia law does not prescribe a single statewide testing protocol; instead, insurers set requirements for premium credits under § 65.2-813.2, and contractors must maintain a drug-free workplace under § 2.2-4312. In practice, most certified programs follow SAMHSA/DOT standards and authorize testing in these situations:

Job Applicant / Pre-Employment Testing - Testing of applicants after a conditional job offer, as a condition of final hire.
Reasonable Suspicion Testing - Based on documented observations of behavior, appearance, speech, or other reliable evidence suggesting drug or alcohol use.
Post-Accident / Post-Injury Testing - Required after incidents resulting in injury, property damage, or a workers’ compensation claim, especially where employee actions may have contributed.
Random Testing - Permitted if conducted through a statistically valid, nondiscriminatory selection process. Insurers often require random testing for certified programs.
Routine Fitness-for-Duty Testing - Allowed as part of regularly scheduled, work-related medical or physical exams.
Return-to-Duty Testing - Required before reinstatement following a policy violation, positive test, or rehabilitation.
Follow-Up Testing - Conducted periodically and unannounced, often for up to two years following rehabilitation or reinstatement.

How to Apply for Premium Credit in Virginia

1. Contact Your Insurer
Request information about their Drug-Free Workplace premium credit program under Va. Code § 65.2-813.2. Each carrier sets its own certification standards.

2. Develop a Compliant Program
Prepare a written drug-free workplace policy, including notice, testing triggers, confidentiality, and MRO review. Most insurers require use of SAMHSA-certified labs and adherence to federal cutoff standards.

3. Implement Education & Testing
Roll out employee education, supervisor training, and testing procedures. Contractors must also post workplace notices and certify compliance for public contracts per § 2.2-4312.

4. Submit Proof to Insurer
Provide documentation (policy, training records, testing procedures) to your carrier. Once approved, the insurer applies the premium discount (typically up to 5%) to your workers’ compensation policy.

5. Renew Annually
Maintain program compliance and recertify each year with updated records to keep the premium credit in effect.

Why Choose ASAP Programs for Compliance?

Implementing a Drug-Free Workplace in Virginia can be confusing because the requirements differ depending on whether you’re pursuing a workers’ comp premium credit or bidding on state contracts. ASAP Programs helps you navigate both.

Policy Development – We create a written policy that satisfies Va. Code § 65.2-813.2 (premium credit) and § 2.2-4312 (public contracts).
Testing Coordination – We partner with SAMHSA-certified labs, set up chain-of-custody forms, and ensure all results go through an MRO for defensibility.
Employee Education & Supervisor Training – We provide training courses that meet insurer and contract requirements while keeping your team compliant.
Insurer & Contract Support – We prepare the documentation your insurer needs for the premium discount and the certifications required for public contracts.
Ongoing Compliance – Annual reviews and updates keep your program current, consistent, and defensible if challenged.

Ready to qualify for Virginia’s workers’ comp premium discount or secure eligibility for state contracts?

Contact ASAP Programs today and let us build your compliant program.

Last updated: September 2025