Imagine driving down the road and encountering a haze of uncertainty as cannabis legalization sweeps through Indiana. What was once a distant reality is now inching closer, creating a fog of potential risks for Hoosier businesses. With neighboring states already navigating the complexities of legal cannabis and federal decriminalization on the horizon, it’s clear that Indiana’s businesses must brace themselves for significant changes.
Auto Liability: A recent Wall Street Journal article highlighted an alarming trend: more people are driving under the influence of cannabis than alcohol. “The legalization of marijuana likely accounts for an additional 1,400 traffic fatalities in the U.S. each year, a 2023 study in the International Journal of Drug Policy found. Many drivers don’t realize cannabis impairs driving: Only 70% of drivers say it is very dangerous to drive an hour after using marijuana compared with 94% for alcohol, according to a 2022 survey of 2,500 drivers” [1]. A 2022 study published by the National Institute of Health found the “legalization of the recreational use of marijuana was associated with a 6.5% increase in injury crash rates and a 2.3% increase in fatal crash rates” [2].
Workers Compensation: The ripple effects of cannabis legalization extend beyond the road and into the workplace. Studies show that cannabis use impairs motor coordination and reaction time, significantly increasing the risk of workplace accidents. According to research by the National Institute on Drug Abuse (NIDA), employees who test positive for marijuana experience 55% more industrial accidents, 85% more injuries, and 75% greater absenteeism compared to those who tested negative.” [3]
Productivity and Absenteeism: Cannabis use can significantly impact productivity and attendance. Employees who consume cannabis may experience difficulties with concentration and efficiency, resulting in higher absenteeism and diminished workplace performance. These challenges can adversely affect overall business operations and profitability.
Liability: While cannabis use affects productivity and attendance, it also raises significant legal concerns. The impact on workplace efficiency and absenteeism is just one part of the equation. Employers must also navigate the complex liability issues associated with potential impairment, which could expose them to legal challenges and financial risks. Employers could face liability for accidents or injuries caused by impaired employees, even if the impairment occurred outside of work hours. This aspect of risk management requires careful consideration and proactive policies.
Key Takeaways for Indiana Businesses:
The data highlights a clear and pressing concern for Indiana businesses: as cannabis legalization advances, the risks of impaired driving and workplace incidents are set to increase. Here’s what businesses need to focus on to manage these emerging challenges:
- Impaired Driving is a Growing Risk: With more individuals consuming cannabis, the risk of impaired driving incidents escalating is a significant concern for businesses. This could lead to increased liability and potential litigation.
- Current Testing Methods Fall Short: Traditional drug tests like urine and blood screenings reveal past use, not current impairment. Field sobriety tests, though valuable, are subjective and can lack standardization. Even newer oral fluid tests, while an improvement, only confirm recent use, not the level of impairment. As Dr. Barry Sample, a workforce drug testing expert, notes, “Drug testing has never been about impairment. It’s about deterring drug use and helping employers ensure they have a drug-free, safe, and productive workforce[4].”
- Innovative Technologies Offer Solutions: The Wall Street Journal article, however, overlooks a promising class of emerging technologies that could revolutionize impairment detection. Companies like Hound Labs have developed breathalyzers that can accurately detect recent cannabis use, focusing on the window of time when impairment is most likely[4]. This technology could provide employers with a reliable tool to ensure workplace safety while respecting employee privacy.
Henriott: Your Guide to Proactive Risk Management
At Henriott, we pride ourselves on staying ahead of the curve. We recognize the limitations of current testing methods and the potential of emerging technologies like breathalyzers to address the challenges posed by cannabis legalization. We are committed to providing our clients with the most up-to-date information and innovative solutions to mitigate risks effectively.
We encourage you to consider the following:
- Educate Your Workforce: Ensure your employees understand the risks associated with cannabis use, especially concerning impaired driving and workplace safety.
- Develop Clear Policies: Establish comprehensive workplace policies that address cannabis use, including impairment testing procedures and consequences for violations.
- Explore Innovative Solutions: Stay informed about emerging technologies like breathalyzers that can help you accurately assess impairment and maintain a safe work environment.
- Partner with Experts: Consult with risk management professionals like Henriott to develop customized insurance and risk management strategies that align with your specific needs and risk profile.
Proactively addressing these issues safeguards your business, protects your employees, and ensures confident navigation of the evolving cannabis landscape. Don’t let the challenges of cannabis legalization catch your business off guard. Contact Henriott today for a comprehensive risk assessment and tailored strategies to mitigate your risks.
Citations:
- Wall Street Journal Article: Wernau, J. (2023, July 25). More People Are Driving on Cannabis. Law Enforcement is Racing to Learn Who is High. The Wall Street Journal.
- Farmer CM, Monfort SS, Woods AN. Changes in Traffic Crash Rates After Legalization of Marijuana: Results by Crash Severity. J Stud Alcohol Drugs. 2022 Jul;83(4):494-501. doi: 10.15288/jsad.2022.83.494. PMID: 35838426; PMCID: PMC9318699.
- Howard, J., Chosewood, L. C., Jackson-Lee, L., & Osborne, J. (2020, June 15). Cannabis and Work: Implications, Impairment, and the Need for Further Research. Centers for Disease Control and Prevention. https://blogs.cdc.gov/niosh-science-blog/2020/06/15/cannabis-and-work/
- Hound Labs, Inc. “Hound Labs Clinical Study Report The Accuracy of Cannabis Breath Testing.” 2024.
For more information about Henriott Group, visit www.henriott.com.
About Henriott Group
Henriott is an independent Risk Management firm dedicated to helping clients prevent, manage, and recover from critical incidents. Working in both public and private entities through effective risk management, risk financing, commercial insurance, employee benefits, crisis management, contingency planning, and crisis response.
CONTACT
Grace Pritchett, Communications (765) 838-8610 | gpritchett@henriott.com
Zach Finn, Director of Risk Management (765) 429-50001 | zfinn@henriott.com
