Disclaimer: This article is for informational purposes only and should not be considered legal advice.

Last chance agreements (LCAs) are a tool employers can use to give employees one final opportunity to address issues related to substance abuse before termination. LCAs are typically used when an employee’s drug or alcohol use has caused a problem in the workplace, such as safety concerns, decreased productivity, or missed deadlines.

An LCA outlines the expectations for the employee’s behavior and includes consequences if they do not comply. For example, an LCA may require the employee to agree to regular drug testing, participate in a rehabilitation program, or abstain from using drugs or alcohol while on the job. The consequences for non-compliance may include immediate termination.

While LCAs can be an effective tool for addressing substance abuse in the workplace, they can also be a legal minefield if not handled correctly. Employers need to ensure that LCAs comply with state and federal laws, including the Americans with Disabilities Act (ADA) and the Family and Medical Leave Act (FMLA).

Additionally, employers need to make sure that LCAs do not discriminate against employees with disabilities. Under the ADA, substance use disorders are considered disabilities, and employers must make reasonable accommodations for employees with disabilities, including those related to substance abuse.

Employers should also be aware of the potential for retaliation claims. If an employee is terminated after refusing to sign an LCA or after failing to comply with its terms, the employee may claim that the termination was retaliatory.

In conclusion, LCAs can be an effective tool for addressing substance abuse in the workplace, but they require careful consideration and planning. Employers should work with experienced legal counsel and HR professionals to ensure that LCAs comply with applicable state and federal laws and do not discriminate or retaliate against employees.