Drug-Free Workplace Act: US

This Drug and Alcohol Free Workplace policy is designed to help federal contractors comply with the federal Drug-Free Workplace Act of 1988 (as implemented through U.S. Department of Labor guidance for federal contractors and grant recipients) by setting clear expectations around drugs, alcohol, and workplace safety, plus the required reporting steps after a workplace drug conviction. It also gives employees practical guidance on common gray areas like prescription medications, marijuana and THC products, working offsite, and asking for help, so you can reduce risk while keeping the employee experience straightforward and supportive.

The History Behind Drug-Free Workplace Act Policies in the US

Drugs & Alcohol in the Workplace became a federal contracting issue in the late 1980s, after years of public pressure to address drug use on the job and its safety and productivity costs. Congress responded with the Drug-Free Workplace Act of 1988, which tied federal money to workplace rules. The Act required federal contractors and grant recipients with contract values over $100k to publish a drug-free workplace statement, set up an awareness program, and create a process for reporting workplace drug convictions.

The details were operationalized through federal guidance and regulations, including U.S. Department of Labor guidance for grantees and the statutory framework later codified in Title 41 for federal procurement. Employers that wanted federal work adopted written policies because the government expected documentation, consistent enforcement, and timely notice to the contracting or granting agency after a covered conviction. That's why you still see the five-day employee notice rule and the ten-day agency notice rule show up in modern policy language.

Later legal and workplace developments pushed some employers to broaden these policies beyond the original federal contractor and grantee audience. The Americans with Disabilities Act drew a careful line between current illegal drug use (not protected) and past addiction or lawful treatment (often protected), which forced more nuance around accommodation and discipline. State medical and recreational marijuana laws and how they interact with federal drug rules and safety regulations then complicated matters, so many employers kept a federal-law baseline for safety-sensitive work and for roles tied to federal funds, even when state law moved in a different direction.

Which Law is the Drug-Free Workplace Act Policy Meant to Comply With?

If you're a federal contractor or grant recipient with contract values over $100k and you create and distribute a Drug-Free Workplace Act Policy for your US-based employees, it's in an effort to comply with the Drug-Free Workplace Act of 1988 (41 U.S.C. chapter 10) and related federal guidance, including the US Department of Labor's Training and Employment Information Notice (TEIN) No. 15-90.

How to Write a US-Specific Drug-Free Workplace Act Policy

• Start with "why" and introduce the concept by stating your organization is committed to a safe, healthy, productive workplace and compliance with federal drug-free workplace requirements.
• Define who the policy covers, including employees and anyone performing work on your organization's behalf while working or representing the organization.
• Prohibit using, possessing, selling, or distributing illegal drugs, drug paraphernalia, or alcohol in connection with work.
• Ban reporting to work or working under the influence, including impairment caused by misuse of prescription or over-the-counter medications.
• Explain that certain prescribed controlled substances may be allowed only when a licensed medical professional confirms working is safe, and clarify that prescriptions do not automatically create an exemption.
• Address marijuana and THC products by stating they are not permitted when their use conflicts with federal law, your organization's requirements, or safety rules.
• State that policy violations may result in discipline, up to and including termination.
• Encourage employees to seek help early and note that your organization will consider reasonable accommodations where possible, without excusing policy violations.
• Include a workplace drug-crime conviction reporting requirement for employees and a related notification obligation to the contracting agency.
• Commit to drug-free workplace education and awareness efforts, including training, policy communication, and access to support resources.

When to Include this Policy in Your Employee Handbook

If you have employees in US and you don't have a similar policy that's available for all US employees, you should include this policy in your employee handbook for US-based employees. 

41 10 § 702 of the Drug-Free Workplace Act states, in (a) (1):

No person, other than an individual, shall receive a grant from any Federal agency unless such person agrees to provide a drug-free workplace by— (A) publishing a statement notifying employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violations of such prohibition;

Your employee handbook is a great place to post information in addition to any official required posters or notices.

Other Considerations

The law applies to US employers that are federal contractors or grant recipients with contract values over $100k that have at least 1 employee in the US.

Exceptions

None.