Safety & Savings Comprehensive Drug Free Workplace Programs

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Safety Savings Comprehensive Drug Free
Workplace Programs
Peter N. Cholakis, MBA www.navigent3.com
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• Table of Contents
• Why drug test?
• Current methods
• Effective drug free workplace solutions case
  studies benefits
• Where to start? (collaboration, legal, goals,
  economics)

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Why drug test?
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Corporate America has a Corporate America has
a140B Problem every year due to Drug
Abuse
(National Institute on Drug Abuse - NIDA)
(National Institute of Health NIH)
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Corporate America has a 10 of U.S
Workers Abuse Drugs.
Employees Reporting Drug Abuse Within Past Year
by Industry Construction 20-25 Manufactu
ring 10-20 Hospitality /
Lodging 12-28 Retail
13-28 Finance / Real Estate 15
(National Institute on Drug Abuse - NIDA)
(National Institute of Health NIH)
Source 2004 National Survey on Drug Use and
Health, Substance Abuse and Mental Health
Services Administration (SAMHSA), U.S. Department
of Health and Human Services 10.5 percent of
full-time employed adults and 11.9 percent of
part-time employed adults were classified with
dependence or abuse
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10,000 Annual cost per drug user United
Stated Department of Labor
(National Institute on Drug Abuse - NIDA)
(National Institute of Health NIH)
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• Calculating the Annual Cost of Drug Abuse to Your
  Company
• 1,000,000
• for every 1,000 employees
• Drug abuse costs GM 1B per year.
• Roger Smith Former
  Chairman

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No Single PL Line Item for Drug Abuse
Workers Compensation 5x claims,
Double Digit Premium Increases Employee
Turnover Absenteeism 30, 10x Health Care
Benefit Utilization 300-400
Higher Inventory Shrinkage / Employee Theft 32
higher Workplace Violence 2/3 of all
arrestees test positive On-the-Job Accidents
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Current drug testing methods
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Current Drug Testing Methods
Mode Pre-hire Pre-employment Post-hire
Post-accident Random Return-to-duty
Reasonable cause
Venue Laboratory On-site
Class Regulated Unregulated
Specimen Type Urine Oral fluid
(saliva) Hair Sweat Blood
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Modes U.S. Workplace Drug Testing
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Venue - Lab vs. On-site Testing
Business Considerations Rapid Hiring
Candidates not lost Minimize time away from
work Adulteration Non invasiveness Gender
considerations
Applicant Hired / Employee Returns to
Work
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Regulated (DOT / Clinical / OTC) -
Unregulated (Workplace)
DOT (FAA, Trucking, Mass Transit, Oil/Gas
Pipeline, Coast Guard) Private Workplace
(unregulated) NIDA 5 panel (AMP,THC,COC,OPI,PC
P) Specified reporting methods Random
testing based on safety group Clinical
(FDA) Result used as part of clinical
diagnosis OTC / Over the counter (FDA) Consumer
Market
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Specimen Type - Comparison Chart
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Drug Testing Devices
Lab-basedUrine
On-siteOral Fluid
On-siteUrine
Lab-based Oral
Lab-basedSweat
Lab-based Hair
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Specimen Type - Comparison Chart
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Example of Detection Windows Urine Oral Fluid

THC
THC
OPIATES
Detection Windows Oral Fluid
Urine
OPIATES
COCAINE
COCAINE
METHAMPHETAMINES
Impairment Period (est.)
METHAMPHETAMINES
1 3 6 8 1 2 3
4 Minutes Hours
Days Weeks
Note Oral fluid sampling provides detection
during impairment period for all drugs
(Impairment Period for THC is 1-2 hours)
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Effective drug free workplace solutions Case
Studies Benefits
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Current Solution Isnt Working
Pre-employment Drug Testing is a Porous
Screen

Applicants Workforce
4.5 10 Positive
Rate Positive
Rate
Porous Screen
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While 8-10 of workers abuse drugs,
pre-employment testing only detects 4.5 or less.
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Number of Lab based Urine Tests (Millions of
Tests)
of Positives from Urine Testing
10 of Workers Abuse Drugs
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5
1988 1989 1990 1991 1992 1993 1994 1995
1996 1997 1998 1999 2000 2001 2002 2003 2004
2005
CONGRESSIONAL HEARING ON ADULTERANTS
FEDERAL DRUG FREE WORKPLACE ACT
INTERNET SALES OF URINE ADULTERANTS
GOVERNMENT PROSPOSES GUIDELINES ALLOWING ORAL
FLUID
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Urine Adulteration Substitution
10,500,000
10,000,000
of Google Hits for WEB Search For beat a
drug test ,
Lab-based Urine Testing, an I Test?
Source DATIA 2005
5,000,000
Number of Hits
1,000,000
500,000
158,000
2001 2002 2003 2004 2005 2006
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Random Testing Solution Avitar CASE STUDY
1 Illicit Drug Usage Reduced 9x
from 7.0 to 0.8 ! Archer
Daniels Midland 30B
Corporation
Case Study 1. ADM, Random Oral Fluid-based
Testing
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Case Study 2 Gould Construction, Random
Testing
Reportable accidents workers comp claims
reduced to zero!
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of Workers Compensation Claims
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Without Avitars ORALscreen
With Avitars ORALscreen
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0
Year 1
Year 2
Year 3
Year 4
Construction
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Benefits of a Drug Free Workplace
50 Fewer on-the-job accidents 10-20 Lower
workers compensation insurance premiums 300
Lower health benefit utilization 10x lower
absenteeism 30 lower employer turnover 40
less inventory shrinkage / employee
theft Sources NCCI / SAMHSA / Avitar Case
Studies / U.S. Department of Labor
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Benefits of Comprehensive Drug Testing by Industry
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Beyond Pre-employment Drug Screening

• Pre-employment
• Screening
• An IQ Test

• RANDOM TESTING
• Proven deterrent - Superior Testing Method
• Minimizes down-time away from job expenses

Date of Hire

• EVENT TESTING
• Post Accident Workers compensation
• Reasonable suspicion Safety / Theft
• Target trouble spots Turnover/accidents/shrink
  age
• Scheduled

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Where to start?
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Drug Free Workplace A Common Framework

• Gain Corporate-wide Support - Senior management
  may not be aware of the extent that drug abuse
  can impact company performance. (C-level, legal,
  HR, risk management, safety, organized labor,
  insurers)
• Develop Written Drug Free Workplace Policy
• Establish Objectives
• Measure and Report Success Metrics / Performance
  Indicators

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Comprehensive Drug Free Workplace
ProgramRequisite Components

• Written policy
• Implementation program
• Drug tests
• Laboratory GC/MS confirmation of non-negatives
• MRO services
• EAP services (employee assistance program)
• Education and training (test administrators,
  supervisors, employees)
• Web-centric database decision support

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Drug Testing Process
Candidate or Employee Self Selects Out
3. Confirmation Sample Collected (employees)
ORALconfirm Kit Chain of Custody Form Sample Sent
to Lab
N0N-NEGATIVE

NEGATIVE
4. GC / MS Laboratory Confirmation
Candidate Hired, or Employee Returns to Work
24-48 hrs ARS, Results Posted to Secure Internet
Site for Employer and/or MRO
On-Site Oral FluidDrug Free WorkplaceSolution
2. On-Site Drug Screen
NEGATIVE
Result Reporting Form
Employee Returns to Work
NON-NEGATIVE
5. MRO Review
MRO Reviews Lab Results and contact Donor as
required. MRO Posts Results to Secure Internet
Site for Employer Review
1. Announcement On-Site Drug Screen to
be Conducted
Candidate or Employee Self Selects Out
NEGATIVE
POSTIVE
Employer Action per Corporate Policy,
Employee Returns to Work, or Candidate Hired
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Confirmatory Testing
Following Directions, Collect Specimen using
ORALconfirm Sample Collection Kit
Oral Fluid Specimen Collection for Laboratory
Confirmation
Using Pre-addressed Mailer Overnight sample and
completed Chain of Custody Form to Laboratory
Upon receipt of initial sample, laboratory will
send a URL for a secure website, a username, and
password, post results within 24-48 hrs (after
receipt of sample, normal business days)
Laboratory Confirmation Result Viewing
Login and check for laboratory results during
initial 48 hours.
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MRO Process
MRO notified that GCMS results requiring review
are available online.
MRO Notified That Lab Results are Available
MRO accesses DONOR information and quantitative
results.
MRO Contact DONOR within specified timeframe and
compares DONOR information with laboratory
findings
MRO Provides Final Determination
MRO posts final result to web and notifies
Securitas
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Database and Decision Support System
of Tests
Corporate Wide And Regional Data Ratios
Benchmarks
of non-negatives
Corporate / Regional Policies Procedures Random
Test Rosters
of confirmations
or MRO reports
of inconclusives
Centralized Database Servers
Roll-up and Distribute Nationwide Data from/to
all Remote Offices
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Database and Decision Support System
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Substances to test for?
Synthetic Opiates (Oxycontin, Vicodin,
etc.) Opiates (Herion, Morphine) Amphetamines /
Methamphetamines, including Ecstasy Cocaine THC
(Marijuana)
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Legal Which companies must have a drug free
workplace program?

• All Federal employees (Executive Branch)
• Some DOT Regulated Areas (pilots, rail engineers,
  etc., certain truck drivers, etc.)
• Private companies who contract with US Government
  (gt25,000 / year), however, not required to us
  SAMHSA or DOT standards.
• Note Federal guideline are sometime used as
  basic template by corporations

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Legal State Regulations

• 1. Most states are PRO drug testing.
• 2. Many states provide workers
  compensation premium discounts (5-20)
  for companies with drug testing programs.
• 3. Many states limit benefits to drug
  abusers disallow or limit workmens comp and/or
  unemployment benefits.

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(No Transcript)
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Source National Council of State Legislatures
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(No Transcript)
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Common Myths
On-site drug testing is not legal False Avitar
provides drug screens not tests drug tests are
typically laboratory-based and involve and
initial screen followed by GCMS test that are
conducted at a laboratory. Drug testing current
employees is illegal False though company MUST
have a written policy in place Random testing
current employees is illegal False Though
companies must have a written policy in place,
and certain states may allow random tests only
for safety sensitive positions. Oral Fluid is
not legally defensible False GCMS is legally
defensible, and not specimen type dependent
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Benefits of an Alcohol- and Drug-Free
Workplace Increased Staff morale Employee
motivation Employee creativity Customer
satisfaction Customer retention Positive
public image Savings through incentive programs
offered by insurance carriers Savings through
fewer accidents and property damage. Decreased
Accidents Errors Incidents requiring
disciplinary action Absenteeism Tardiness
Employee theft and fraud Legal expenses
Insurance claims Staff turnover Chances of
hiring substance abusers Workers' compensation
cost.
Source U.S. Department of Labor
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Searchable DatabasesCross Reactivity
Non-Interfering Compounds
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Who Drug Tests?
Agriculture Banking / Finance

Food Hospitality / Lodging Recreation

Retail Restaurants Staffing Services
Supermarkets
Architecture, Engineering, Construction
Save Mart
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Searchable DatabasesCross Reactivity
Non-Interfering Compounds
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Thank you.Peter N. CholakisVice President,
MarketingAvitarTechsupport_at_navigent3.comwww.nav
igent3.com
You cant manage what you dont measure.
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Appendices
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Sources of Shrinkage(33b/ year 1.65 of Retail
Sales)
2003 National Retail Security Survey by
Richard C. Hollinger Ph.D.
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Oral Fluid is Accurate and Legally Defensible
LabOne studies demonstrate that oral
fluid results closely correlate with urine tests.
Saliva is fast becoming the standard for
detecting HIV infection, illicit drugs, and
alcohol use. Dr. David Wong Medical Researcher,
UCLA Oral fluid testing to detect drug use has
advanced so far, that it's
now as accurate as urine. Dr. Edward
Cone Toxicologist
March 8, 2005
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Proven Testing Program

• Oral-based 0n Site Testing for Drugs of Abuse
• Pre-employment
• Random
• For-Cause / Reasonable Suspicion
• Post-accident
• Disposable Alcohol Test

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The Program at Gould Construction
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The Program at Gould Construction
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The Program at Gould Construction