What Does It Cost Not to Test for Marijuana?
By Bill Current, President and Founder of Current Consulting Group (CCG)
This information is provided for educational purposes only. Reader retains full responsibility for the use of the information contained herein.
What does the average workers’ compensation claim cost? What does the average workplace accident cost? What is the human cost when someone is seriously injured on the job? And, heaven forbid, what impact does a death on the job cost, especially when it is determined afterwards that the accident could have been avoided?
These are important questions, and the answers can be measured in dollars, for sure, but also in the emotional, mental, and physical costs realized by those directly and even indirectly affected by workplace accidents. Suffering an injury on the job that requires medical attention away from the scene of the accident or causes a permanent disability is a traumatic experience with both immediate and long-lasting side effects.
(Author’s Note: There was a great article written by Matthew Hart and published by Occupational Health & Safety on December 14, 2022, entitled “High Human Costs of Workplace Injuries Could Deepen Labor Shortages In 2023.”[i] I highly recommend it.)
The legalization of marijuana has led to three specific things that we know without a doubt:
- More people are using marijuana.[ii]
- Fewer employers are testing for marijuana.[iii]
- More workers are testing positive for marijuana following workplace accidents.[iv]
Some employers (and their attorneys) are shying away from drug testing because either they think it’s not legal or it exposes the employer to greater legal liability. Even some drug testing providers are advising their clients not to test for marijuana in states like California and Washington, which recently enacted new laws restricting how employers in those states can test for marijuana. However, neither state prohibits employers from drug testing or, more specifically, testing for marijuana, though conditions now apply.
Can disgruntled marijuana users who fail a pre-employment test or are fired after testing positive for marijuana sue the employer? Of course. And what does a lawsuit cost when an employer is sued for acting in good faith based on the result of a positive test for marijuana? Who knows, but the prospect of losing such a legal challenge scares employers and their attorneys. In a 2023 survey of employers conducted by the Current Consulting Group, 40% said they were concerned about lawsuits and legal liability if they tested for marijuana. However, only 5% said they had ever faced such a legal challenge.[v]
But maybe the more prudent question to ask is what it would cost if an employer faced a negligent hiring or respondeat superior lawsuit, two doctrines of law that can be used to hold employers accountable for the actions of their employees. What if a company fails to conduct a pre-employment drug test on an applicant vying for a position driving a delivery van? But it turns out that a simple $30 drug test would’ve identified the individual as a regular marijuana user, someone who shouldn’t be trusted to represent a company behind the wheel of a vehicle or function in any safety-sensitive occupation. While high on marijuana smoked just before beginning his shift, he runs a red light, rams into a vehicle with a family of five aboard, and… well, you get the picture. That lawsuit is not only going to cost the employer a fortune financially, which could possibly put some companies out of business, but the human cost could be beyond repair.
Some drug testing providers and labor attorneys do not want to be on record advising a company to test for marijuana in states where using marijuana is legal. And I’m not necessarily advocating that employers test for marijuana. What I am suggesting is that employers should weigh the possible costs of not testing for marijuana and make an informed business decision that is right for more than just the drug users.
By the way, according to data from the National Council on Compensation Insurance (NCCI), the average cost for a workers’ compensation claim was $42,008 in 2019.[vi]
According to the National Safety Council (NSC), the “cost per medically consulted injury in 2021 was $42,000, while the cost per death was more than $1.3 million. These figures include estimates of wage losses, medical expenses, administrative expenses, and employer costs, but exclude property damage costs except to motor vehicles.”[vii]
But what about the emotional and mental trauma caused by a workplace accident? Occupational Health & Safety (OH&S) stated the following: “When a worker is injured, the personal cost can be astronomical. The indirect costs associated with an injury are estimated to be four to ten times higher than the direct costs.”
As marijuana use continues to increase due to the folks advocating for its legalization and fewer employers screen applicants for pot, more employees will test positive for marijuana following workplace accidents.
The simple truth of the matter is that it could be far more costly to not test for marijuana. It’s never wrong to do what’s right. But that’s up to you to decide.
End Notes
[i] High Human Costs of Workplace Injuries Could Deepen Labor Shortages In 2023. OH&S. December 2022. https://ohsonline.com/Articles/2022/12/14/High-Human-Costs-of-Workplace-Injuries.aspx?Page=1
[ii] What Percentage of Americans Smoke Marijuana? Gallup. August 2022. https://news.gallup.com/poll/284135/percentage-americans-smoke-marijuana.aspx
[iii] Current Consulting Group’s 2023 Employer Drug Testing Survey.
[iv] Post-Accident Workforce Drug Positivity for Marijuana Reached 25-Year High in 2022, Quest Diagnostics Drug Testing Index Analysis Finds. Quest Diagnostics. May 2023. https://newsroom.questdiagnostics.com/2023-05-18-Post-Accident-Workforce-Drug-Positivity-for-Marijuana-Reached-25-Year-High-in-2022,-Quest-Diagnostics-Drug-Testing-Index-Analysis-Finds
[v] Current Consulting Group, 2023, 2023 Employer Drug Testing Survey. Current Consulting Group.
[vi] Evaluating the True Cost of a Workers’ Compensation Claim. PMC Insurance Group. November 2021. https://pmcinsurance.com/blog/evaluating-the-true-cost-of-a-workers-compensation-claim/
[vii] Work Injury Costs. National Safety Council: Injury Facts. https://injuryfacts.nsc.org/work/costs/work-injury-costs/
© 2010-2024 The Current Consulting Group, LLC – No portion of this article may be reproduced, retransmitted, posted on a website, or used in any manner without the written consent of the Current Consulting Group, LLC. When permission is granted to reproduce this article in any way, full attribution to the author and copyright holder is required.
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