California employers are not legally obligated to provide access to drug rehabilitation coverage before terminating an employee for substance-related concerns. Under California Labor Code § 1025, reasonable accommodation is only required if an employee voluntarily seeks help and can still perform essential job duties. If substance use impairs workplace safety or job performance, employers have the right to terminate employment. Federal law, including the Americans with Disabilities Act (ADA), does not require offering rehabilitation as an alternative to discipline or dismissal.
Employers must carefully balance employee rights with operational needs and safety standards. The law distinguishes between employees who proactively request treatment and those whose substance use poses a risk or disrupts job performance. Establishing clear, consistently enforced policies helps employers avoid legal complications and ensures fair treatment for all employees.
California law only requires reasonable accommodation when an employee voluntarily requests substance abuse treatment and is still able to perform their essential job duties. This might involve a temporary leave of absence or modified responsibilities, but does not apply if job performance is already compromised.
Employees who are currently using illegal drugs are not protected under state or federal disability laws. If an employer confirms active substance use that affects work performance, they are within their legal rights to proceed with disciplinary action or termination without offering rehabilitation.
Employers are allowed to terminate employment immediately if an employee’s substance use poses a safety risk to themselves, coworkers, or the public. This is especially critical in high-risk industries such as construction, transportation, or healthcare, where impairment can result in serious harm.
Federal laws such as the ADA and FMLA do not obligate employers to offer rehab in lieu of termination. These laws protect individuals in recovery from discrimination but do not extend the same protections to employees actively engaged in substance use or failing to meet performance standards.
While certain states provide stronger protections for employees dealing with substance abuse, California law does not mandate that employers offer rehab before termination. However, businesses may choose to provide voluntary treatment options as part of a proactive wellness or employee assistance program.
Employers in California are required to provide reasonable accommodations to employees in recovery from substance use disorders, as long as the person can perform the essential functions of their job. This may involve allowing time off for rehabilitation programs or adjusting work schedules to support ongoing recovery. However, these protections do not extend to employees who are currently using illegal drugs or whose substance use jeopardizes workplace safety or performance.
Accommodating employees in recovery involves an individualized assessment and a collaborative approach. Employers should document all communications and decisions related to accommodation requests, ensuring compliance and reducing the risk of legal disputes.
California law offers broader protections for employees with substance use disorders than federal law. The Fair Employment and Housing Act (FEHA) covers employers with five or more employees and uses a more inclusive definition of disability compared to the Americans with Disabilities Act (ADA), which applies to employers with fifteen or more employees. Both laws exclude current illegal drug use from protection, but California’s FEHA sets higher standards for accommodation and disability recognition.
Employers operating in California must comply with both state and federal requirements, often defaulting to the more protective state standard. As a result, a wider range of employees may qualify for workplace accommodations under FEHA than under the ADA.
Recognizing the distinctions between FEHA and ADA is essential for employers seeking to ensure compliance and effective management of substance use issues in the workplace.
Employers may lawfully terminate employees for current drug or alcohol use that impairs job performance or compromises workplace safety. Both California Labor Code § 1025 and federal law permit termination when substance use affects essential job functions or poses a risk to others. Failing a legally administered drug test, when policies are clearly communicated and consistently enforced, can also justify termination.
It is important for employers to base termination decisions on documented performance issues, safety risks, or policy violations, rather than on an employee’s protected disability status or participation in a rehabilitation program. Proper documentation and adherence to the interactive process are critical for maintaining legal compliance and minimizing liability.
California employers can reduce legal risks and foster a safer workplace by implementing comprehensive policies, providing ongoing management training, and thoroughly documenting all actions related to employee substance use. Policies should be clear, consistently applied, and updated to reflect changes in state and federal law, such as recent updates regarding off-duty cannabis use.
Following a structured approach helps employers navigate the complexities of substance use in the workplace while ensuring compliance and supporting employee well-being:
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Britney Elyse has over 15 years experience in mental health and addiction treatment. Britney completed her undergraduate work at San Francisco State University and her M.A. in Clinical Psychology at Antioch University. Britney worked in the music industry for several years prior to discovering her calling as a therapist. Britney’s background in music management, gave her first hand experience working with musicians impacted by addiction. Britney specializes in treating trauma using Somatic Experiencing and evidence based practices. Britney’s work begins with forming a strong therapeutic alliance to gain trust and promote change. Britney has given many presentations on somatic therapy in the treatment setting to increase awareness and decrease the stigma of mental health issues. A few years ago, Britney moved into the role of Clinical Director and found her passion in supervising the clinical team. Britney’s unique approach to client care, allows us to access and heal, our most severe cases with compassion and love. Prior to join the Carrara team, Britney was the Clinical Director of a premier luxury treatment facility with 6 residential houses and an outpatient program