The Impact of Cannabis Use on Workers’ Compensation Risk
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Employers can avoid extremely costly workers’ comp claims by proving that an employee was impaired on the job. Gaize provides a defensible mechanism for doing that, while chemical drug tests cannot prove impairment.
Introduction
As acceptance and legalization of cannabis are growing in many parts of the world, it’s crucial to examine its potential impact on various aspects of society. One major area of concern is the workplace and what the potential effect of cannabis use on workers’ compensation risk could be. As more individuals turn to cannabis for recreational or medicinal purposes, it is essential to understand the potential implications for workplace safety and the associated legal and financial implications.
About Workers’ Comp
As a primer of this discussion, it’s important to understand the basics of both workers' compensation and cannabis use. Workers’ compensation is an insurance system designed to provide benefits to employees who suffer work-related injuries or illnesses. The risk factors associated with workers’ compensation claims can vary depending on the industry and the nature of the work being performed, so workers’ compensation insurance rates vary for the businesses too.
Workers' compensation provides wage replacement and medical coverage for employees injured on the job. To be eligible, one must suffer a work-related injury or illness and inform the employer immediately. Most states will likely have a short waiting period, then benefits generally kick in within a few weeks. Eligibility hinges on proving your injury arose from work activities, not through outside factors or pre-existing conditions. The severity and type of injury determine the duration and amount of benefits, which typically replace a portion of your lost wages and cover approved medical expenses.
Of particular note for employees, workplace impairment from drugs is disqualifying for workers’ compensation benefits. Said another way, if an employer can prove that an employee was impaired at the job, a workers’ comp payout can be avoided.
Workers’ Comp and Drug Impairment
Drug impairment can have a significant impact on workers' compensation risk. Workers who are impaired by drugs are more likely to be injured on the job, and they are also more likely to file workers' compensation claims. This is because drugs can impair judgment, coordination, and reaction time, all of which are important for safety in the workplace. Because of that, many states offer discounts for businesses that adopt workplace drug testing policies.
Workers’ Comp insurance is highly variable by state and industry, but an example of a typical premium discount for adopting a drug testing policy is shown below:
In addition, drugs can also interact with certain workplace hazards, making them even more dangerous. For example, workers who are impaired by drugs may be more likely to be injured by falls, machinery, or exposure to hazardous chemicals. As a result, employers have a responsibility to take steps to prevent drug impairment in the workplace. This includes implementing drug testing programs, providing drug education and awareness training, and creating a drug-free workplace culture.
As everyone knows, cannabis is being rapidly legalized across the world. Unlike alcohol, impairment from THC in Cannabis isn’t black and white. THC can be detected in the body for an extended period of time and the detection window depends on various factors, including the frequency of use, the potency of the cannabis product, and the ingestion method used.
THC can be detected in urine for over a month, while blood and saliva tests can detect use for over a week. Meanwhile, cannabis impairment typically only lasts for about 90 minutes. Alcohol testing primarily focuses on the level of alcohol in the body to determine impairment. This is not the case with cannabis, as testing for THC detects the presence of THC or its metabolites in the body, which does not directly indicate current impairment but rather can only indicate prior cannabis use. This is what makes cannabis a difficult substance to manage for employers, and is why cannabis impairment testing is so important.
Drug use on the job can be exacerbated by factors such as physical demands, occupational hazards, and fatigue that can impair judgment or coordination can contribute to increasing workers’ compensation risk.
How does Cannabis impairment on the job increase workers’ comp risk?
Impaired Cognitive Function: The active component in cannabis, THC, can impair cognitive function, including attention, memory, and decision-making. Impaired cognitive function can increase the likelihood of workplace accidents, especially in safety-sensitive industries such as construction, manufacturing, and transportation.
Reduced Motor Skills and Coordination: Cannabis use can affect motor skills and coordination, leading to decreased dexterity and slowed reaction times. In jobs that require precise movements or operating heavy machinery, impaired motor skills can significantly increase the risk of workplace injuries.
Increased Accident Proneness: Cannabis use has been associated with an increased risk of accidents, both on and off the job. Research suggests that individuals who use cannabis are more likely to engage in risky behavior, which can translate into higher workers' compensation claims.
Post-Injury Implications: If an employee is injured while under the influence of cannabis, it can complicate the workers’ compensation process. Employers may argue that the employee’s impairment contributed to the accident and may contest the validity or extent of the claim. This can result in legal battles and delays in compensation for injured workers.
Several studies have examined the relationship between cannabis use and workplace safety. A study published in the Journal of Occupational and Environmental Medicine found that cannabis users had a higher risk of work-related injuries than non-users. The research highlighted impaired cognitive function, decreased motor skills, and increased accident proneness as significant contributing factors.
Another study conducted by the National Institute on Drug Abuse (NIDA) reported that employees who tested positive for cannabis had:
55% more industrial accidents
85% more injuries
75% higher absenteeism rate compared to non-users
Navigating the legal landscape surrounding cannabis use and workers’ compensation is complex. While cannabis is legal for medicinal or recreational use in some jurisdictions, it remains illegal at the federal level in the United States and many other countries. This disparity can create legal challenges for both employees and employers. For example, in areas where cannabis is legalized for recreational or medicinal purposes, workplace policies may be limited to addressing workplace impairment rather than the mere presence of THC. In some safety-sensitive industries, employers may implement testing policies that include THC screening, and positive tests can lead to adverse employment consequences. Today, some states are starting to enact legislation safeguarding off-duty use by employees.
To address the potential risks associated with cannabis use, employers can implement proactive strategies:
Review and Update Policies: Employers should regularly review and update their drug and alcohol policies, ensuring they reflect current laws, regulations, and best practices. As cannabis legislation evolves, it is essential to align workplace policies accordingly to address potential risks while remaining compliant with local regulations. Employers should seek legal counsel to ensure policies are robust and comprehensive. Employers should also establish clear policies regarding drug use in the workplace, including specific guidelines regarding cannabis use. These policies should outline the consequences for violating the rules and provide information on available resources for employees seeking help with substance abuse.
Education and Training: Employers should invest in training programs that educate employees about the potential risks of cannabis use, particularly in safety-sensitive positions. Educating employees on the potential impact on workplace safety can help reduce accidents and improve overall risk management. This includes raising awareness about the impact of impaired cognitive function and reduced motor skills on workplace safety. By fostering a culture of awareness and responsibility, employers can help reduce accidents and improve overall risk management.
Impairment Testing: Employers should invest in Impairment Detection Technology (IDT), which is any technology product that can detect active impairment. The National Safety Council defines IDT as “technology with the potential to screen for multiple forms of impairment in order to aid in fitness for work assessments.” Impairment can be from drugs, fatigue, prescription medication, or any other reasons. Employers could institute random testing on their workers prior to the start of every shift, or after lunch breaks. If an employee shows signs of impairment, they would then be drug tested as a way to confirm the findings from the IDT. Other times that an employer can screen for impairment would be before operating equipment, for job site or facility access, reasonable suspicion, post-incident, and return to duty. Gaize is an example of the most advanced impairment detection technology available today.
Gaize Impairment Detection Technology being used in a logistics facility.
Drug Testing: regular drug testing can be an effective tool to deter cannabis use in safety-sensitive positions in places where cannabis is illegal. Implementing a comprehensive drug testing program that includes cannabis screening can help identify employees who may be impaired while on the job. However, employers should ensure that drug testing policies comply with local laws and regulations and consider the specific needs and characteristics of their workforce. These laws are changing rapidly, particularly where cannabis has been legalized, so be sure to contact your attorney for more information.
Employee Assistance Programs (EAPs): Offering Employee Assistance Programs can provide support to employees struggling with substance abuse, including cannabis use. EAPs often provide confidential counseling and resources for employees seeking help, fostering a supportive environment that encourages individuals to address their substance use issues proactively. By offering assistance, employers can help mitigate the risks associated with cannabis use and promote employee well-being.
Conclusion
The impact of cannabis use on workers’ compensation risk is a multifaceted issue that requires careful consideration. While cannabis legalization has provided new opportunities for individuals, employers must prioritize workplace safety and risk management. By understanding the potential implications of cannabis use, implementing clear policies, providing education and training, conducting impairment screening and drug testing, offering support through EAPs, and fostering a culture of safety, employers can navigate this complex landscape effectively. By proactively addressing the risks associated with cannabis use, employers can ensure a safer working environment and minimize the potential impact on workers’ compensation claims.
