According to the AMA, the percentage of companies that conduct drug tests dropped last year, from an all time high of 81 percent of employers in 1996 to 62 percent last year. Experts disagree if the decline in drug testing is because testing costs aren’t worth the return on investment or if it is because testing has worked as a deterrent to drug use.

Ninety percent of the tests done in the United States are urinalysis. Costs for urinalysis range from $25 to $44 for each applicant tested. According to Elena Carr, drug policy coordinator for the U.S. Department of Labor’s Working Partners for an Alcohol and Drug Free Workplace, drug testing has been standard practice for some big companies, but in the current tight labor market, some employers may feel that conditions are too tight to be choosy. Others feel that drug testing was supposed to result in a more safe and productive workforce, and after 20 years of implementing the tests, they have not seen the results they hoped for.

According to Lewis Maltby, president of the National Workrights Institute, most applicants who test positive on the drug tests are weekend marijuana smokers, not drug users with serious problems. Maltby feels that efficiently and thoroughly checking someone’s references trumps a drug test every time, because an applicants’ past performance on the job is likely to predict future performance.

Others believe that the costs of not implementing drug testing are just too high. Melissa Moskal, Executive Director of the Drug & Alcohol Testing Industry Association says that companies that implement drug testing have lower turnover and absenteeism. Industry studies also show that a drug user in the workplace can cost an employer $11,000 to $13,000 a year because of health costs, injuries, and damage to equipment.

Mark deBernardo, founder and executive director of the Institute for a Drug Free Workplace, also believes the costs of not testing are too high. He says drug users in the workplace might steal to support their habit or carry weapons. He also says that simply having a program works as a deterrent because it screens out applicants who do drugs. Also, if a company’s competitors screen, it’s possible that applicants who want to avoid drug testing will choose them instead.

Companies who implement pre employment drug testing need to be aware that the Americans with Disabilities Act (ADA) does not preclude drug testing. This act does, however, prohibit employers from mandating pre-offer medical exams or making any medical inquiries. During a drug screen, applicants are asked if they take any prescription medications. Many employers get around this potentially discriminatory situation by offering conditional employment, after the drug screen has been passed.

Employers need to weigh the costs of testing against any potential benefits. A pilot program in one area of the company could be used to determine if accident and health care costs are positively impacted.