Frequently Asked Questions

The SBA Paul D. Coverdell Drug-Free Workplace Program awards grants to eligible intermediaries that help small businesses set up drug-free workplace programs (15 U.S.C. 654). The program gives small employers access to the same program elements larger employers use.

Program elements. A drug-free workplace program under the statute includes:

• A written policy that explains expectations, prohibitions and the consequences of violations.
• Drug and alcohol abuse prevention training for a total of at least two hours for each employee.
• Employee drug testing, with analysis by a laboratory certified by SAMHSA or approved by the College of American Pathologists for forensic drug testing, and review of each positive result by a medical review officer.
• Employee access to an employee assistance program, including confidential assessment, referral and short-term problem resolution.
• Continuing alcohol and drug abuse prevention education.

Who receives grants. An eligible intermediary is an organization with at least two years of experience carrying out drug-free workplace programs, its own drug-free workplace policy, and a location in a State, the District of Columbia or a territory (15 U.S.C. 654).

Definitions. The statute defines the terms used in the program, including employee and medical review officer (15 U.S.C. 654).

How the pieces connect. The FAQ on drug-free workplace program components walks through each element. The FAQ on the role of an MRO explains result review, and the FAQ on steps to start a drug testing program covers getting started.

Small businesses can report excessive or unfair federal regulatory enforcement to the SBA Small Business and Agriculture Regulatory Enforcement Ombudsman, who receives the comments, works with the agency involved and reports each year to Congress on federal agency responsiveness (15 U.S.C. 657 and SBA Ombudsman page).

How to file. The Office of the National Ombudsman accepts comments through its online form. A filer who cannot use the online form can email the PDF comment form to ombudsman@sba.gov, and a filer who cannot access either form can call 888-REG-FAIR (SBA Ombudsman page).

Confidentiality. The Ombudsman refers comments to the inspector general of the affected agency in appropriate cases, and otherwise seeks to keep the identity of the person and small business confidential to the same extent as employee identities are protected under 5 U.S.C. 407 (15 U.S.C. 657).

Annual report. Based on substantiated comments, the Ombudsman reports each year to Congress and affected agencies on agency enforcement activities, including a rating of how responsive each agency's regional and program offices are to small businesses. Agencies get a chance to comment on draft reports (15 U.S.C. 657).

Regulatory Fairness Boards. SBA has a Small Business Regulatory Fairness Board in each regional office. Each board must meet at least once a year to advise the Ombudsman and report substantiated instances of excessive enforcement (15 U.S.C. 657).

Rights are preserved. SBA states that filing a comment does not limit the filer's rights or obligations related to the federal agency involved (SBA Ombudsman page).

Workplace enforcement examples. Small employers deal with many agencies, including those enforcing workplace safety and drug testing rules. The FAQ on legal requirements for drug testing in the workplace lists common requirements, and the FAQ on whether DOT-regulated employers are also regulated by OSHA shows how agency jurisdiction overlaps.

SBA size standards set the largest a business can be, measured by average number of employees or average annual receipts, and still qualify as small for SBA programs and federal contracting (13 CFR 121.201). The standard depends on the North American Industry Classification System (NAICS) code for the business's primary industry.

Employee-based standards. SBA counts individuals employed on a full-time, part-time or other basis, including workers obtained from a temporary employee agency, professional employer organization or leasing concern (13 CFR 121.106(a)). Volunteers who receive no compensation are not counted. Size is the average number of employees over the pay periods for the preceding completed 24 calendar months, and part-time and temporary employees count the same as full-time employees (13 CFR 121.106(b)). The employees of domestic and foreign affiliates are included.

Receipts-based standards. Receipts generally means total income plus cost of goods sold, as reported on IRS tax return forms (13 CFR 121.104(a)). Receipts do not include net capital gains or losses or taxes collected for and remitted to a taxing authority.

Related topics. The FAQ on drug-free workplace program components describes the elements of a workplace drug program, and the FAQ on why employers drug test explains reasons employers test.

Related SBA topics. The FAQ on the SBA drug-free workplace program describes SBA's grant program for intermediaries that help small businesses.