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Last Chance Agreements for Workplace Drug and Alcohol Violations

Addressing employee issues related to drug and alcohol misuse poses significant challenges for employers, particularly when balancing disciplinary actions with the opportunity for rehabilitation. Last chance agreements (LCAs) are a nuanced tool that employers can use in such scenarios. They offer a structured yet compassionate approach to handling these sensitive issues.

What Are Last Chance Agreements?

Last chance agreements are written contracts between an employer and an employee who has violated company policies regarding drug or alcohol use. (Sometimes unions are also party to the agreement.) These agreements are not exclusively used for substance-related issues, but are common in these contexts due to the complex nature of addiction and its impact on employment.

The essence of an LCA is to provide the employee with an opportunity to rectify their misconduct through acknowledgment and compliance with specific conditions set forth by the employer. Typically, the agreement comes into play after an incident that could otherwise lead to immediate termination. The LCA offers an alternative path toward the goals of rehabilitation and retention.

Key Elements of Last Chance Agreements for Drug and Alcohol Issues

  1. Acknowledgment of Misconduct: The employee must acknowledge their wrongdoing, specifically regarding the misuse of drugs or alcohol, and recognize the potential consequences of their actions on their employment status.
  2. Agreement to Conditions: LCAs usually stipulate that the employee agrees to meet certain conditions to remain employed. These conditions often include undergoing treatment, abstaining from further use of prohibited substances, and subjecting themselves to random drug testing.
  3. Referral to Support Services: Many LCAs include a referral to an Employee Assistance Program (EAP) or other professional treatment services. This aspect underscores the employer’s role in supporting employee health and recovery rather than merely punishing wrongdoing.
  4. Disclosure Agreements: In some cases, LCAs may require the employee to authorize the disclosure of treatment-related information to the employer. This allows employers to monitor compliance with the agreement’s terms without violating privacy regulations such as HIPAA.
  5. Final Opportunity: The agreement is typically framed as a final opportunity to remain employed. Failure to comply with the terms usually results in termination, as understood and agreed upon in advance by all parties involved.

Benefits of Using Last Chance Agreements for Drug and Alcohol Issues

  • Rehabilitation Over Punishment: LCAs focus on rehabilitation, offering employees a chance to overcome their struggles with substance abuse and recover their professional standing.
  • Legal Safeguards: They provide a clear, legally sound framework that protects both the employer and the employee. Employers can enforce the terms of the agreement, knowing they have offered a fair chance to the employee, thus mitigating potential legal challenges. For more on potential employee protections related to drug and alcohol use, read Employee Drug Addiction and Alcoholism in New York.
  • Workplace Safety and Integrity: By addressing drug and alcohol misuse constructively, employers can maintain safety and integrity within the workplace, ensuring that all employees operate in a safe and supportive environment.
  • Promoting Recovery: Encouraging treatment and recovery reflects positively on the employer’s commitment to their workforce’s well-being, fostering a supportive and understanding company culture.

Considerations for Employers

Last chance agreements represent a potential win-win solution in the delicate balance of employment law and employee welfare. They provide a structured yet empathetic approach to serious workplace issues, facilitating recovery and retention where possible, and upholding the employer’s commitment to a safe and productive work environment.

While last chance agreements offer a valuable option for managing complex employee issues, they require careful drafting to ensure they are legally compliant and effective. Employers should consult with employment attorneys to tailor these agreements to their specific workplace policies and the legal requirements of their jurisdiction.

 

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Employee Drug and Alcohol Issues Cover Slide

Employee Drug and Alcohol Issues (Webinar Recap)

On February 28, 2024, I presented a complimentary webinar entitled “Employee Drug and Alcohol Issues”. For those who couldn’t attend the live webinar, I’m happy to make it available for you to watch at your convenience.

In the webinar, I discuss:

  • Medical and Recreational Marijuana Use
  • Drug and Alcohol Testing
  • Policies and Procedures
  • Discipline

and much more!

Employers hate to be faced with issues related to employee drug and alcohol use. Unfortunately, there’s no avoiding the possibility that you will have to deal with these issues as part of your human resources duties.

This webinar addresses the latest updates related to the legalization of marijuana in New York as well as general requirements and best practices related to employee drug use. If you currently rely on drug testing or are considering using it with your employees, make sure you understand how the laws interact to regulate that process (or not!). Plus, we conclude with a discussion of related discipline issues (and alternatives).

Don’t have time to watch the whole webinar right now? Click here to download the slides from the webinar.

Why You Should Watch “Employee Drug and Alcohol Issues”

What do you do when one of your employees reports to work under the influence? Has drug or alcohol use contributed to performance issues, employee disputes, or safety concerns?

Most employers have many options in how they deal with workplace drug and alcohol issues. Yes, there are many laws that might come into play. And they don’t affect all employers equally. Watch this webinar to understand better how the legal issues interplay with critical business factors to keep your organization in compliance.

Don’t Miss Our Future Webinars!

Click here to sign up for the Horton Management Law email newsletter to be among the first to know when registration is open for upcoming programs! Plus, follow us on LinkedIn for updates on important employment law issues.

Opioid Addiction

EEOC Issues New Guidance on Opioid Addiction

On August 5, 2020, the U.S. Equal Employment Opportunity Commission (EEOC) issued technical guidance on opioid addiction and employment. Workforce substance abuse is on the rise and can cause many expensive problems for businesses and industries. These problems can range from a loss of productivity, injuries, disruption of operations, and increased health insurance claims. While employers may prohibit the illegal use of drugs and alcohol at the workplace, they may not discriminate against a person based on drug addiction or alcoholism.

Americans with Disabilities Act

The Americans with Disabilities Act of 1990 (ADA) prohibits disability discrimination in areas including employment, transportation, and public services. Title 1 of the ADA focuses on the workplace and requires employers to make reasonable accommodations for employees with disabilities. The EEOC has enforcement responsibility for Title 1 of the ADA.

The ADA does not protect an employee or job applicant who is “currently engaging” in the illegal use of drugs. However, it does extend protections to employees who:

  • who have been successfully rehabilitated and who are no longer engaged in the illegal use of drugs;
  • are currently participating in a rehabilitation program and are no longer engaging in the illegal use of drugs; and
  • are regarded, erroneously, as illegally using drugs.

EEOC Technical Documents on Opioid Addiction

Two new technical documents from the EEOC intend to provide clarity to existing requirements under the ADA.

The EEOC notes that this guidance “is not a new policy,” but instead explains existing principles.

“Use of Codeine, Oxycodone, and Other Opioids: Information for Employees”

This guidance document explains that those using prescription opioids, addicted to opioids, or who were addicted to opioids in the past may have the right to reasonable accommodations. The EEOC states that employers can’t fire a worker who lawfully uses opioids unless the employer first considers whether there is a way for them to perform their duties safely. The guidance defines “opioids” to include prescription drugs such as codeine, morphine, oxycodone, hydrocodone, and meperidine and illegal drugs like heroin.

Click here to access “Use of Codeine, Oxycodone, and Other Opioids: Information for Employees.”

Disqualification from a Job

The legal use of an opioid seldom automatically disqualifies an employee for a job. Conversely, employers can fire (or not hire) employees for illegally using opioids, even if there aren’t any safety or performance concerns.

In the case of legal opioid use by prescription, the employer must first consider whether the employee can do the job safely and effectively.

Reasonable Accommodations

Employers must provide reasonable accommodations to a job applicant or an employee who needs them because of a medical condition that qualifies as a disability under the ADA unless it would impose an undue hardship on the employer. Reasonable accommodations can include a change in the way things are generally done at work, including different breaks or work schedule, a change in shift assignments, and temporary transfers.

Employers may need to accommodate employees’ opioid use when the employee:

  • takes prescription opioids to treat pain;
  • is recovering from opioid addiction; or
  • has a medical condition related to an opioid condition.

Employees may request a reasonable accommodation from their employer at any time. In evaluating the accommodation request, an employer must engage in an “interactive process” with the employee. In some cases, the employer may ask the employee to submit medical documentation to support their request. An employer does not have to provide the accommodation requested if an alternative accommodation would also enable the employee to perform the essential functions of the job.

For more on reasonable accommodations, click here.

Sick Leave for Treatment or Recovery

When an employee requests to take a leave for treatment or recovery, an employer may be required to allow the individual to use accrued paid leave or permit the employee to take time off without pay if no qualifying paid leave is available.

Drug Testing

This EEOC guidance document emphasizes that if a business has a drug-testing program, employers should give any applicant or employee a chance to provide information about lawful drug usage.

“How Health Care Providers Can Help Current and Former Patients Who Have Used Opioids Stay Employed”

This guidance document lays out the legal road map for healthcare providers. The guidance begins by describing workers’ ADA rights and the process of reasonable accommodations for disabilities. Then the guidance offers medical professionals tips on how to write and provide employers with medical documentation about a person’s condition.

When a patient asks for a reasonable accommodation, the employer may ask for medical documentation of the employee’s disability. This EEOC guidance on opioid addiction suggests that medical providers might include the

  • Medical professional’s qualifications and the nature and length of the relationship with the patient;
  • Nature of the patient’s medical condition;
  • Patient’s functional limitations in the absence of treatment;
  • Need for a reasonable accommodation; and
  • Suggested accommodations.

Click here to access “How Health Care Providers Can Help Current and Former Patients Who Have Used Opioids Stay Employed.”

Review Your Company Policies and Procedures

Not everyone understands the implications of disability discrimination laws related to opioid addiction. Employers should take this opportunity to review their policies and procedures related to employee drug use. Additional training for managers can also help avoid inadvertent violations of the ADA.