What Drug-Free Workplace Rules Apply to Federal Grant Recipients?

Under OMB's governmentwide drug-free workplace guidance, a recipient of a federal grant or cooperative agreement must make a good-faith effort to maintain a drug-free workplace, which includes publishing a written policy statement, setting up a drug-free awareness program and notifying the awarding agency of employee drug convictions (2 CFR 182.200 to 182.225). Each federal agency adopts this guidance in its own chapter of Title 2 (2 CFR 182.30). It covers financial assistance awards such as grants and cooperative agreements, and not technical assistance that provides services instead of money, loans, loan guarantees, interest subsidies, insurance, direct appropriations or veterans' benefits to individuals (2 CFR 182.605(b)). Federal contracts are covered separately by FAR subpart 26.5 and the clause at FAR 52.226-7.

Policy statement. The recipient must publish a statement that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in its workplace, and specify the actions it will take against employees who violate the prohibition. Each employee who will work on any federal award must get a copy (2 CFR 182.210) and must be told that, as a condition of employment under any award, the employee must abide by the statement and notify the employer in writing of a conviction for a criminal drug statute violation in the workplace no later than five calendar days after the conviction (2 CFR 182.205).

Awareness program. The recipient must inform employees about the dangers of drug abuse in the workplace, its policy, available counseling, rehabilitation and employee assistance programs, and the penalties for drug abuse violations (2 CFR 182.215).

Conviction reporting. Within 10 calendar days after learning of an employee's conviction, the recipient must notify in writing each federal agency on whose award the employee was working, including the employee's position title and the identification number of each affected award. Within 30 calendar days, it must take appropriate personnel action or require the employee to complete an approved assistance or rehabilitation program (2 CFR 182.225).

Violations. A recipient is in violation if the agency head or a designee determines in writing that it has violated subpart B, or that the number of employee convictions for workplace drug violations is large enough to show it has not made a good-faith effort (2 CFR 182.500). Possible actions include suspension of payments, suspension or termination of the award, and suspension or debarment for up to five years (2 CFR 182.510). For a particular award, the agency head may waive these actions in writing if the waiver is in the public interest, and that authority cannot be delegated (2 CFR 182.515).

Related topics. The FAQ on drug-free workplace program components and the FAQ on DOT employee assistance program requirements describe workplace program elements.