From Zero Tolerance to Second Chances: What Employers are Rethinking

At this year’s National Drug Testing Association (NDASA) Conference, Quest Diagnostics reported that approximately 75% of people with a substance use disorder are employed, representing about 15% of the U.S. workforce. In a separate survey, 15.3% of employees admitted to working under the influence of alcohol, and 2.9% reported being under the influence of illicit drugs while on the job. These statistics, combined with the continued legalization and destigmatization of marijuana, persistently high positivity rates across all industries, the ongoing fentanyl crisis in the United States, and the challenges employers face in recruiting and retaining talent, have contributed to a major shift in our industry.

Second chance programs are becoming a central topic of conversation. Employers with long-standing zero-tolerance policies are re-evaluating their approach and beginning to incorporate these programs into their workplace strategies.

What is a second chance program?

A second chance program is a structured workplace policy that allows employees who test positive for drugs or alcohol to retain their employment under specific conditions. Rather than enforcing immediate termination, these programs offer a path to recovery and reintegration, typically including:

• Assessment by a Substance Abuse Professional (SAP): The employee is evaluated to determine the appropriate level of care or treatment.
• Participation in a Treatment Plan: This may involve counseling, rehabilitation, or education tailored to the employee’s needs.
• Return-to-Duty (RTD) Process: After completing treatment, the employee must pass a drug and/or alcohol test before returning to work.
• Follow-Up Testing: Ongoing, unannounced drug tests, often over a period of 12 to 60 months, to ensure continued compliance.

What are the benefits?

While second chance programs have clear benefits for employees by offering a path to recovery and job retention, they also deliver significant advantages for employers.

According to the National Safety Council (NSC), employees in recovery have:

• Lower turnover rates,
• reduced absenteeism, and
• lower healthcare costs compared to peers who have never experienced a substance use disorder.

These outcomes also translate into the bottom line. High turnover not only disrupts productivity and morale; it’s also expensive. Research from SHRM estimates that replacing an employee can cost 50% to 60% of their annual salary. For example, replacing an employee earning $60,000 could cost between $30,000 and $45,000.

To help employers understand the financial impact of substance use in their workplace, NSC offers a free Substance Use Cost Calculator for Employers, which factors in industry, workforce size, and location.

Beyond cost savings, second chance programs are also linked to:

• Improved workplace safety: Employees are more likely to seek help before a crisis.
• Stronger workplace culture: These programs signal that the organization values people, not just policies.
• Enhanced employer brand: Progressive, empathetic policies resonate with today’s workforce and can improve recruitment and retention.

Does it work?

Employers often question whether the employee will end up testing positive again in the future, further jeopardizing workplace safety and wasting time for the employer; however, American Substance Abuse Professionals (ASAP) reports an 85% success rate for individuals who successfully complete the return-to-duty and follow-up testing program and return to work safely. 

What do I need to know to get started?

For a second chance program to be effective, employers must establish clear policies and procedures to set themselves and their employees up for success. These programs should be part of a broader, comprehensive workplace strategy.

Establish a Second Chance Policy.

• Who qualifies for the second chance program?
• What are the requirements?
• Who’s responsible for covering the costs associated with counseling and treatment programs?
• What are the consequences for non-compliance?

Partner with Qualified Professionals.

• Work with a network of certified Substance Abuse Professionals (SAPs) who can assess employees and recommend treatment plans.
• Leverage your third-party administrator to manage the return-to-duty and follow-up testing program.
• Consider offering an Employer Assistance Program (EAP) to provide additional support and resources.

Provide Supervisor Training.

• Equip supervisors with reasonable suspicion training so they can recognize the signs and symptoms of impairment and respond appropriately.

TEAM supports clients with sample policies, referrals to our preferred SAP and EAP partners, and supervisor reasonable suspicion training through our in-house, self-paced online course. Contact us if you’d like more information on how we can help.

The Next Step

Implementing a second chance program requires thoughtful consideration, and it may not be the right fit for every organization; however, as the landscape of drug testing and the labor market continues to evolve, now is the time for employers to reexamine their approach. With the right policies, partnerships, and training in place, second chance programs can benefit both employees and organizations alike.

TEAM strives to be a trusted partner to our clients. Contact us if you’re considering a second chance program or have questions about how to get started.