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Employers Begin to Rely Less on Drug Tests : Labor: Fear of lawsuits discourages testing, although the trend may go the other way in California. Firms are more careful about when to test.

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TIMES STAFF WRITER

Corporate America’s love affair with employee drug-testing may be cooling.

A survey released Wednesday by the American Management Assn. provides evidence that many employers are scaling back their drug-testing programs, even though the number of firms that test at least some workers continues to rise slowly. Experts attributed the second thoughts about these programs to employer concerns about privacy and wrongful termination lawsuits. Costs are a growing factor, too, especially since so few workers actually test positive for drugs.

The nationwide study, based on a January poll of 794 big and medium-size companies, found that 87.2% of the employers conduct drug tests, up from 84.8% a year ago. The percentage of companies using such tests had soared in the late 1980s and early 1990s, largely because of new governmental security and safety requirements in industries such as transportation and defense.

But this year’s survey found that, in many cases, fewer workers are being tested. For instance, companies that test employees on a random or periodic basis said they checked 34% of their eligible staffers in 1993, down from 41% in 1992.

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The study also detected a decline in firms that test new hires for drug use, although the drop-off may be too tiny to be statistically meaningful. The only type of testing that appears to have increased is testing for workers involved in accidents or for whom there is “reasonable suspicion” of drug use.

The findings suggest that “a lot of companies are taking a second look at what they’re doing,” said Eric Greenberg, research director of the American Management Assn., a nonprofit group offering training programs for nearly 8,000 corporate members.

In California, however, a January state Supreme Court court decision might prompt employers to buck the national trend and start using drug tests more freely, said Los Angeles management lawyer Joel P. Kelly. The ruling, in a case brought against the National Collegiate Athletic Assn., makes it more difficult to sue employers or other organizations requiring drug tests.

Kelly explained that companies in California previously had been more reluctant than firms elsewhere to test employees for drugs because of questions about workers’ privacy rights under state law.

All the same, employers across the country may be questioning whether testing programs are worth the effort and cost. For one thing, an average of only 4.3% of job applicants test positive for drugs, according to the American Management Assn. survey. For current employees, the figure is 2.5%.

Another emerging issue for employers are costly lawsuits by workers who are dismissed, punished or turned down for jobs because of their drug tests. One reason that employers are vulnerable to such litigation is that so many firms are conducting their drug tests improperly, Greenberg said.

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The study found that at least a quarter of the firms surveyed do not provide commonly recommended follow-up procedures when initial drug tests come back positive. The problem, Greenberg said, is that the urine tests widely used to check initially for drug use often fail to distinguish between legal and illegal substances.

“If someone is using an antihistamine, it’s going to be read as an amphetamine,” Greenberg said.

Employee Drug Testing

According to a new survey of 794 big and medium-size companies by the American Management Assn., the percentage of employers that test employees or job applicants for drugs varies significantly from industry to industry. One reason: in industries such as transportation and defense, government safety and security requirements often mandate testing. Manufacturing may show the highest rate of testing partly because it employs drivers who are required to take drug tests.

INDUSTRY & PERCENT OF EMPLOYERS WHO TEST EMPLOYEES FOR DRUG USE Manufacturing: 89.8% Public Administration: 88.0% Transportation: 87.5% Wholesale/Retail Trade: 82.4% General Services: 79.5% Business/Professional Services: 70.9% Financial Services: 64.9%

TESTING POSITIVE

When employees test positive for drugs, firms respond in a variety of fashions. The figures exceed 100% because some firms listed more than one action.

Dismiss test-positives immediately: 17% Dismiss test-positives as a “last resort”: 14% Refer test-positives for counseling and treatment: 50% Impose a suspension, probation or other disciplinary action: 18% Reassign test-positives to other duties: 3%

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