Alabama Drug-Free Workplace Premium Credit Program

There is a 5 percent (5%) workers’ compensation insurance premium discount for those employers who establish a drug-free workplace on the job.

The bill applies to all workers’ compensation policies issued and renewed in Alabama on or after July 1, 1996.

To qualify for the discount, an employer’s drug-free program must be certified by the Workers’ Compensation Division of the Alabama Department of Industrial Relations as being in full compliance with the provisions of Code of Alabama, 1975, Sections 25-5-330 through 25-5-340.

This premium discount will be applied to the insured’s policy pro rata as of the date the employer receives certification and will continue for a period not to exceed four years. Certification is required for each of the four years. Thereafter, any premium discount is determined from the experience rating plan of the employer, or by the State Insurance Commissioner if the employer is not experience rated.


The Law requires that a program must contain all of the following elements:

  1. A written substance abuse policy. We will provide you with a simple “Fill-in-Blank” substance abuse policy. This policy covers all aspects of Alabama’s Drug Free Workplace Law.
  2. A substance abuse testing program. You must conduct pre-employment, reasonable suspicion, post-accident and post-rehab testing. We will assist you with locating a drug testing facility in your area.
  3. Employee Assistance Program. You must provide and EAP or some means of posting treatment facilities in your area. We will provide you with an updated list of treatment facilities in your area.
  4. Employee education. You must provide two hours of employee drug free workplace education per year. We will provide you with our monthly employee training newsletter. The newsletter provides ten minutes of education per month and provides a total of two hours of employee drug education.
  5. Supervisor training. You must provide two hours of supervisor drug free workplace education per year on how to recognize and document drug abuse in the workplace. We will provide you with a free supervisor training DVD.

Your membership also includes:

  • “Step-by-Step Guide” to Implementing a Drug Free Workplace
  • Application for Drug Free Certification
  • Reasonable Suspicion Determination Checklist for Supervisors
  • Free Drugs Don’t Work Poster, and Window & Door Stickers
  • Free Drug Free Workplace Consultation and Assistance in Completing the Application for Certification
  • Safe Driver Policy with Acknowledgement Form
  • Violence Prevention Policy and Procedure Manual
  • Supervisors – Crisis Management Document
  • Workplace Accident Procedures & Documentation Form

Additional Newsletters:

  • Employee training newsletter in Spanish.
  • Supervisor training newsletter.