Drugs and Alcohol in the Workplace
Issue Overview: In August 2005, the Arizona Supreme Court ruled that denying workers’ compensation benefits to workers found to be under the influence of drugs and/or alcohol at the time of a workplace accident was unconstitutional. The Court held that workers’ compensation in Arizona is a “no-fault” system created under Article 18, Section 8 of the State Constitution.
This recent decision invalidates the laws pertaining to this issue, therefore making employers liable for any workers’ compensation benefits to be paid to an employee found to be under the influence of drugs and/or alcohol. However, this ruling DOES NOT prohibit employers to have a drug and alcohol policy in their workplace. For example, employees can still be compelled to submit to drug tests after a work-related injury, and are subject to the same penalties and consequences in the event they fail such tests or refuse to submit to them. Employers may still reprimand or terminate an employee who fails a drug test.
Because the Supreme Court found the statutes unconstitutional, there is little incentive for employees not to engage in drug or alcohol abuse. Not to mention that employers could potentially see higher workers’ compensation premiums to compensate for injuries caused by employees under the influence of drugs or alcohol.
Restoring the law to where it was before, the Grammatico decision requires the passage of the following two pieces of legislation:
- HCR 2004 would place on the November 2006 general election ballot a referendum to amend the constitution to authorize the legislature to enact laws to limit or deny workers’ compensation for an injury to a worker whose use of alcohol or illegal drugs was a "substantial contributing cause" of the accident.
- HB 2111 is a statutory provision stating an employee is not eligible for workers’ compensation if the injury is due to an accident that resulted from the employee's use of alcohol or a controlled substance. The enactment of this measure is conditional upon voter passage of HCR 2004.
NFIB Position: Drugs and alcohol in the workplace are a serious concern to small business owners as it increases their own liability and the safety of their employees and customers.
NFIB supports a Constitutional amendment that will allow a denial of workers’ compensation benefits to those employees who are found to be under the influence of drugs and/or alcohol at the time of a workplace accident.
Issue Status: On Wednesday, March 29, Rep. John McComish of Phoenix asked the Senate Commerce Committee to hold both bills because HCR 2004 had the potential to create unintended consequences. Specifically, there was concern that the HCR could allow an injured worker to sue their employers if denied coverage on the basis of a drug and/or alcohol impairment.
The business community will come together after session to work on stronger language to ensure that employers can’t be sued over this type of benefit denial.
Additional Resources: For information on setting up a drug and alcohol program in your workplace, contact Drugs Don't Work in Arizona, at (602) 248-8453 or (800) 380-DDWA.
