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 September 2011                                   
Drug Abusers and Small Businesses 

 

Drug use in the United States is rising at an alarming pace, and this is being felt in no greater place than the small American business.

While substance abuse is a valid concern for businesses of any size, smaller businesses are at a greater risk of drug abusers damaging or completely destroying the company.

More drug abusers work there.

As far as American employees go as a whole, about half work at large corporations and the other half work at small businesses. The landscape shifts dramatically when looking at drug users. 90% of drug users work at small businesses. There's more than one reason for this:

1: Smaller businesses often do not require new employees to undergo drug testing during the hiring process. Drug users have a better chance of 'slipping through' to jobs than at a larger corporation.

2: Small businesses often do not have an established drug-free workplace policy.

3. Owners of smaller businesses often have a more personal relationship with their employees than larger business owners. This creates a more difficult and complex situation when dealing with a drug abusing employee. Small business owners are more likely to turn a blind eye to drug abuse and give more 'second chances' than owners of larger companies.

The large amount of drug users leaves small businesses extremely vulnerable to high costs of employing drug abusers.

- The 'dead weight' costs. Drug users are more likely to miss work, be less productive, and be less focused. While the cost of these actions is difficult to quantify, it can add up to lots of dollars down the drain.

- The 'lost customer' costs. An unproductive employee may mishandle customer requests, needs, and complaints, causing disgruntled customers to take their business elsewhere. A small company most likely cannot absorb losing customers as easily nor can attract customers as quickly as a larger company. These losses can greatly impact the bottom line.

- The legal costs. Smaller businesses pockets are not as deep as larger corporations. If an impaired employee causes an accident or injury, the resulting lawsuits, workers comp claims, and property damage could devastate a small business much faster than a large corporation.

- The co-worker costs. Employees of small businesses work closely together, and a drug abusing employee can strangle the productivity. Knowing other employees are abusing drugs can bring down morale. Workers may also have to redo work or cover for a drug abusing co-worker. The top producing employees may become disgruntled by the drug abusers performance to the point that they may leave the company.

Smaller business owners need to be aware of this trend and take steps to protect their company from drug abusing employees.

Step 1: Implement drug screening as part of the pre-employment screening process. A good portion of drug testing is relatively low-cost. This step can bring about a high level of benefit by screening out drug abusers BEFORE they are hired.

Step 2: Check out OSHA's website. There are lots of free tools and resources available to create a drug free workplace.

Step 3: It's advisable to have a written plan of how and on what occasions your company screens for drugs, and the actions that will be taken if an employee has drugs in their system. Stay consistent with that plan.

These 3 steps are low cost to the company and a good starting point to minimize a company's risk and expense of employing drug abusers.

Having a program in place can play a vital role in increasing productivity, minimizing accidents, decreasing theft, and improving safety and attendance. And, for small companies, this can be the difference in thriving or going out of business.

Visit our blog by clicking here or clicking the link at the top of this newsletter for more articles.  Check back often for the most up to date industry information!

Compliance Corner -
Alabama E-Verify Legislation  
 

The following is general educational information only. It is not legal advice. You need to consult with legal counsel regarding all employment law matters. This information is subject to change without notice.

 
Effective Date: January 1, 2012 and April 1, 2012

Status: Signed into law June 9, 2011


Impact:
House Bill 56, also known as the Beason-Hammon Alabama Taxpayer and Citizen Protection Act, l requires all Alabama employers to enroll in and use the federal E-Verify program. The law takes effect in two
stages:

  1. Effective Jan. 1, 2012, employers with state contracts and subcontracts must provide documentation that they are enrolled and participating in E-Verify.
  2. Effective April 1, 2012, all employers in Alabama must enroll in E-Verify to verify the employment eligibility of their new hires.

If you have any questions, feel free to call me, Johnna Leeds at 256-325-6779.

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In This Issue

Drug Abusers & Small Businesses

Compliance Corner: Alabama E-Verify Legislation

Upcoming Webinars

Some Indiana Records May Disappear

Upcoming Webinars

 

To Register, click on the webinar title below:    

 

Drug Testing

 

Dangers of Drugs in the Workplace

 

Tuesday, September 20 from 2:00 - 2:30 PM CST. 

 

Join us for an informative look at the trends of drugs in the workplace, the dangers of employees who abuse drugs, and actions companies can take to protect themselves. Space is limited. Click here to register now.  

 

ID Theft is one of the fastest growing crimes - are you protected?

Protect Yourself & Your Business  From ID Theft

 

Tuesday, September 27 from 2:00 - 2:30 PM CST

 

Identity theft is one of the fastest growing crimes in the United States today, affecting 1 in every 20 Americans.  Individuals spend an average of 30-60 hours handling various matters relating to identity theft.  

 

Learn how the thieves are stealing identities, tips to protect your identity, and the steps to take if you or someone you know has their identity stolen.  Space is limited.  Click here to register now. 

Some Indiana Records May Disappear

 

Indiana residents with older misdemeanor records on low level felony records that aren't violent crimes or sex crimes can now request that their records be sealed from employers and others under a new state law.  

 

The law covers those who had completed their sentences more than 8 years ago. Police would still have access to these records. The law which was approved this spring allows people who have dismissed or not prosecuted cases to ask for restricted access to their court records. Those who get approval for the restricted access will not be required to disclose their arrests on an employment application.  

 

Coming Soon! Social Media for Background Screening - Keeping You FCRA Compliant 

 

Data Facts is currently working to offer a new social media service composed of deep web search technology, far beyond Facebook, LinkedIn, Twitter, and your expected media presence.  This service would produce a comprehensive profile of a candidate's social media footprint.  An easy to understand report is produced based on employer defined criteria.  Recently the FCRA approved the use of information from social media sites in hiring.  However, the same FCRA requirements for background checking apply to social media.  By using Data Facts, you stay in compliance with the FCRA, Title VII, EEOC and state laws to avoid lawsuits.   

 

If this is something you might be interested in, please click the link below to take our 30 second survey on the services we are looking at offering.

  Take this survey

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