Addiction in the Workplace: A Guide for Employers

Published: February 2026 | Last Updated: February 2026 | Reading Time: 6 min

The Business Case for Addressing Addiction

Substance use disorders are a significant workforce issue that directly impacts the bottom line. The National Safety Council estimates that employers bear approximately $81 billion annually in costs associated with employee substance use, including decreased productivity, increased absenteeism and presenteeism, higher healthcare utilization, elevated workers' compensation claims, and increased accident and injury rates.

Workforce Prevalence

SAMHSA data indicates that approximately 70% of adults with substance use disorders are employed. This means that addiction is present in virtually every workplace regardless of industry, company size, or geographic location. Industries with the highest rates of substance use include construction, mining, food service, entertainment, and recreation.

Developing a Workplace Policy

Drug-Free Workplace Policy

A comprehensive drug-free workplace policy should clearly define prohibited substances and behaviors, outline testing procedures and circumstances (pre-employment, random, reasonable suspicion, post-accident), specify consequences for policy violations, describe available support resources including EAPs, ensure compliance with federal and state laws, and be communicated clearly to all employees.

Reasonable Suspicion

Supervisors should be trained to recognize signs of impairment and to document observations objectively. Reasonable suspicion should be based on observable, articulable facts — not assumptions, rumors, or personal opinions. Documentation should include specific behaviors, dates, times, witnesses, and the impact on job performance or safety.

Legal Framework

Americans with Disabilities Act (ADA)

The ADA treats addiction as follows: current illegal drug use is not protected, individuals who have completed or are currently participating in a supervised rehabilitation program and are no longer engaging in illegal drug use are protected, alcoholism is considered a disability, and employers cannot discriminate against employees based on a history of addiction. Employers retain the right to prohibit illegal drug use and alcohol use in the workplace, require that employees not be under the influence at work, and enforce conduct and performance standards equally.

Family and Medical Leave Act (FMLA)

Eligible employees may take up to 12 weeks of unpaid, job-protected leave under FMLA for substance abuse treatment provided by a healthcare provider. The leave must be for treatment by a healthcare provider — FMLA does not protect absence due to substance use itself or resulting from an employee's use of the substance.

Employee Assistance Programs

EAPs are one of the most effective tools employers have for addressing workplace substance use. These programs typically provide confidential assessment and short-term counseling, referrals to treatment providers, crisis intervention, follow-up services, and work-life balance resources. Research shows that EAPs produce a return on investment of $3-10 for every dollar spent through reduced absenteeism, healthcare costs, and turnover.

Creating a Supportive Culture

Beyond Enforcement

While clear policies and consequences are necessary, the most effective workplace approaches to addiction combine accountability with support. Employers who create cultures where employees feel safe disclosing substance use problems and seeking help — without automatic termination — see higher rates of treatment engagement and employee retention.

Manager Training

Supervisors and managers are the frontline in identifying and responding to workplace substance use. Training should cover recognizing signs of impairment, documenting performance concerns, conducting conversations about EAP referral, understanding legal obligations and protections, and maintaining confidentiality.

Return-to-Work Programs

Structured return-to-work agreements help employees successfully transition back after treatment. These typically include continued participation in recovery support, regular check-ins with a supervisor or EAP counselor, possible workplace accommodations, and clear expectations for performance and conduct.

Frequently Asked Questions

Can I require an employee to take a drug test?

This depends on your jurisdiction, industry, and whether you have a drug-free workplace policy. Federal contractors and safety-sensitive industries have specific testing requirements. Private employers in most states can test under defined circumstances (pre-employment, reasonable suspicion, post-accident). Always consult employment law specific to your state.

What should I do if an employee comes to work impaired?

Ensure the employee's immediate safety and remove them from any safety-sensitive duties. Document your observations objectively. Do not accuse or diagnose — focus on observable behaviors. Contact HR and follow your company's reasonable suspicion testing and EAP referral procedures.

Can I fire an employee for addiction?

You can terminate employees for policy violations, performance failures, and workplace misconduct regardless of whether addiction is involved. However, you cannot terminate someone solely because they have a history of addiction or are seeking treatment. Consult with HR and legal counsel to ensure compliance with ADA and state disability laws.

References

1. National Safety Council. (2024). The Employer's Role in Addressing Substance Use.
2. SAMHSA. (2023). Drug-Free Workplace Programs.
3. U.S. Department of Labor. (2023). Working Partners for an Alcohol- and Drug-Free Workplace.
4. Society for Human Resource Management. (2024). Managing Employee Substance Abuse.
5. U.S. Equal Employment Opportunity Commission. (2023). The ADA: Your Responsibilities as an Employer.

This article was reviewed by the Valley Spring Recovery Center Editorial Team. For more information, call (201) 781-8812 or visit our admissions page.

Valley Spring Recovery Center — Evidence-based addiction treatment in Norwood, New Jersey.