Drug testing in the workplace: An overview of legal and philosophical issues

This article examines a range of legal and philosophical issues related to the drug-testing debate. The discussion of legal issues includes potential litigation on constitutional grounds (for public employees), statutory and tort grounds, or on the basis of civil rights legislation. Arbitration standards are also examined for situations involving unionized employees. The article further highlights pragmatic issues including the accuracy and costs (economic and noneconomic) of drug tests as well as the distinction between a positive drug test and impaired performance. Finally, the article addresses the delicate balance between an employer's right to unimpaired performance and an employee's right to privacy.     

The effect of job impact,job interdependence,and employee characteristics on the acceptability of a drug-testing policy

Increasingly employers are testing employees for illicit drug use. Employees vary in their degree of acceptance of drug-testing policies. Both job and individual characteristics are hypothesized to affect individuals’ reactions to drug-testing policies. The first study reported here investigated the effect of job impact, job interdependence, sex, and age on four aspects of the acceptability of a drug-testing policy. While there was no effect for the job characteristics, both age and sex had significant effects. A follow-up study which focused solely on employee characteristics replicated the age effect. Implications are discussed.     

Supervisory and nonsupervisory employee attitudes about drug testing

Both supervisory and nonsupervisory employees are divided in their support for drug testing n the workplace. Comparisons are drawn between employee attitudes displayed in this study with student and public attitudes reported in previous studies. Factors associated with employee attitudes toward drug testing include: occupational group, acceptance of related employer disciplinary rules, interest in training on assisting those with substance abuse problems, and the timing of discipline and referrals for assistance. The implications of these findings for drug-testing programs are discussed.     

Consistency vs Flexibility: The Impact of Employee Voice in Rule-Based and Discretionary Decision Procedures

Consistency and flexibility are desirable, but incompatible, features of decision-making procedures. A comparison of a rule-based decision procedure (maximizing consistency) with a discretionary decision procedure (maximizing flexibility) was conducted. Employee voice was predicted to interact with decision procedure in impacting fairness perceptions. Student participants (N = 128) in a 2 × 2 laboratory simulation viewed videotaped depictions of a supervisor discussing a positive drug test result with an employee. The employee was given, or not given, an opportunity to explain; the supervisor was permitted discretion in determining the consequence or was completely bound by company policy. The proposed advantages of each decision procedure were obtained under contrasting levels of employee voice. Voice was desirable when the supervisor had discretionary authority; voice was unnecessary or even detrimental when a rule-based procedure was used. No overall preference between these two decision procedures was evident.     

A model of employee responses to drug-testing programs

Testing employees for drug use is an increasingly widespread organizational response to the problem of employee drug abuse. Despite this, little attention has been given to its effects on employee attitudes and behavior. This paper reviews the issue of drug testing in industry, provides a theoretical model of employee perceptions of and responses to drug-testing programs, and offers an agenda for future research directions.     

Drug testing in the transportation industry: The maritime case

The maritime industry provides an interesting case study of the design and implementation of drug-testing programs in the transportation industry during the 1980s. It is clear that such programs were designed and implemented less because of empirical evidence of safety problems than for political reasons. The results in the maritime industry are indicative of a program that is expensive to operate, intrusive with regard to employee privacy, and which will have little or no impact on safety. Focusing such programs on the issue of impairment rather than on the issue of drug usage per se is likely to improve the outcome of the programs. Although, despite common belief, there is little evidence that drug usage or the “drug problem” in U.S. society as a whole had gotten worse in the preceding years (Schonsheck, 1989, 250–251).     

Predicting On-the-Job Substance Abuse with a Written Integrity Test

This paper explores definitions and predictors of employee substance abuse, using 173 employed undergraduates who completed a prominent written integrity test and a self-report of work behaviors, including on-the-job (OTJ) alcohol and drug abuse. Approximately 21% of participants reported recent OTJ abuse and were significantly more likely than nonabusers to exhibit other counterproductive work behaviors. Validity coefficients for the integrity test's Employability Index (r = –.25) and Drug Avoidance Scale (r = –.39) suggest that such measures can reduce OTJ abuse, but the procedure's effectiveness may be limited by the high rate of false negatives. We discuss suggestions for improving psychological testing to reduce OTJ abuse.     

Is good character good enough? The effects of situational variables on the relationship between integrity and counterproductive work behaviors

The literature on integrity testing in personnel selection has reported impressive validities for predicting counterproductive work behaviors (CWB), but has seldom taken into consideration the possible influences of situational variables once job applicants are hired. This study examined the main effects and interaction effects of two situational variables, employee engagement and security control norms, on the relationship between integrity and CWB admissions. Based on data collected from a census sample of job incumbents from a large international retail company, all three variables were found to be moderately related to CWB, incrementally valid when aggregated, and together led to a lower rate of false positives than that yielded by integrity alone. In addition, employee engagement and security control norms each moderated the relationship between integrity and CWB when integrity was low, but did not influence CWB when integrity was high. The implications of these findings on personnel selection methods are discussed.     

Age diversity management and organisational outcomes: The role of diversity perspectives

Several macro‐level and meso‐level factors have led to unprecedented proportions of aged employees in organisations, resulting in higher levels of age diversity. Little is known about which age diversity practices and programmes are effective in which types of organisations for which outcomes. Derived from social exchange theory, this paper proposes and tests positive relationships between age diversity practices and organisational outcomes and work‐life programmes and organisational outcomes. Derived from contingency theory, it also proposes and tests for a moderating effect of diversity perspective (fairness and discrimination vs. synergy) on the two main relationships. Data were collected from 248 medium to large‐sized for‐profit organisations. The results partially support both main effect hypotheses and one moderating effect hypothesis. The findings suggest different organisational outcomes for age diversity practices and work‐life programmes. Theoretical and practical implications are discussed.     

Attitudes toward employee and employer rights in the workplace

A large sample (N=692) of undergraduate business majors were surveyed in order to assess their attitudes toward 54 different employer activities that might impact on employee rights in the workplace. Demographic and lifestyle measures as well as one personality variable, authoritarianism, were also included in the survey. A factor analysis on attitudes toward employer activities revealed three distinct factors, which we labeled private, polydrug (i.e., polygraphs and drug tests), and normative activities. Mean levels of agreement with employer actions were highest for normative and lowest for private activities, with polydrug activities falling in between. All mean differences were highly significant. Authoritarianism proved to be the strongest predictor of attitudes toward both private and polydrug activities.     

Nonuniform DIF Detection using Discriminant Logistic Analysis and Multinomial Logistic Regression: A comparison for polytomous items

This study focused on the effectiveness in nonuniform polytomous item DIF detection using Discriminant Logistic Analysis (DLA) and Multinomial Logistic Regression (MLR). A computer simulation study was conducted to compare the effect of using DLA and MLR, applying either an iterative test purification procedure or non-iterative to detect nonuniform DIF. The conditions under study were: DIF effect size (0.5, 1.0 and 1.5), sample size (500 and 1000), percentage of DIF items in the test (0, 10 and 20%) and DIF type (nonuniform). The results suggest that DLA is more accurate than MLR in detecting DIF. However, the purification process only improved the correct detection rate when MLR was applied. The false positive rates for both procedures were similar. Moreover, when the test purification procedure was used, the proportion of non-DIF items that were detected as DIF decreased for both procedures, although the false positive rates were smaller for DLA than for MLR.     

TACKLING FALSE POSITIVES IN BUSINESS RESEARCH: A STATISTICAL TOOLBOX WITH APPLICATIONS

Serious concerns have been raised that false positive findings are widespread in empirical research in business disciplines. This is largely because researchers almost exclusively adopt the ‘p‐value less than 0.05’ criterion for statistical significance; and they are often not fully aware of large‐sample biases which can potentially mislead their research outcomes. This paper proposes that a statistical toolbox (rather than a single hammer) be used in empirical research, which offers researchers a range of statistical instruments, including a range of alternatives to the p‐value criterion such as the Bayesian methods, optimal significance level, sample size selection, equivalence testing and exploratory data analyses. It is found that the positive results obtained under the p‐value criterion cannot stand, when the toolbox is applied to three notable studies in finance.     

Erroneous detection of nonuniform DIF using the Breslow-Day test in a short test

This paper studies the Type I error rate obtained using the Breslow-Day (BD) test to detect Nonuniform Differential Item Functioning (NUDIF) in a short test when the average ability of one group is significantly higher than that of the other. The performance is compared with the logistic regression (LR) and the standard Mantel-Haenszel procedure (MH). Responses to a 20-item test were simulated without Differential Item Functioning (DIF) according to the three-parameter logistic model. The manipulated factors were sample size and item parameters. The design yielded 40 conditions that were replicated 50 times and the false positive rate at a 5% significance level obtained with the three methods was recorded for each condition. In most cases, BD performed better than LR and MH in terms of proneness to Type I error. With the BD test, the Type I error rate was similar to the nominal one when the item with the highest discrimination and difficulty parameters in the case of equally sized groups was excluded from the goodness-of-fit to the binomial distribution (number of false positives among the fifty replications of a Bernoulli variable with parameter equal to 0.05).     

Are CSR Disclosures Value Relevant? Cross-Country Evidence

Using proprietary data that rate corporate social responsibility (CSR) disclosures of firms in 21 countries, this study examines how the strength of nation-level institutions affects the extent of CSR disclosures. We then examine the valuation implications of CSR disclosures and consider how the relation between CSR disclosures and firm value varies across countries. In contrast to prior studies, we separate CSR disclosures into an expected and unexpected portion where the unexpected portion is a proxy for the incremental information contained in CSR disclosures. We observe a positive relation between unexpected CSR disclosure and firm value measured by Tobin's Q. We also find that, while countries with strong nation-level institutions promote more CSR disclosures, the valuation of a unit increase in unexpected CSR disclosures is higher when nation-level institutions are weak.     

Correlates of Drug Testing Attitudes in a Sample of Blue Collar Workers

Using responses from 1429 workers employed in the wood products industry, we examine the relationship between drug testing (DT) attitudes and several demographic, organizational, job attitude, and job outcome variables. After controlling for age and marital status, analyses revealed moderate correlations between DT attitudes and alcohol and drug variables, DT program characteristics, organizational, and work attitude variables. DT attitudes were weakly but significantly related to absences, late work arrivals, accidents, and injuries. Implications of the findings and future research suggestions are discussed.     

Employee drug testing: A constitutional perspective

The proliferation of employee drug testing by federal and state governments and by private sector employers acting pursuant to governmental directives has led to a steadily growing number of lawsuits raising constitutional challenges to such testing. Most of these cases have been based on the Fourth Amendment's prohibition of unreasonable searches and seizures. In 1989, the Supreme Court addressed the constitutionality of employee drug tests for the first time in two cases,Skinner v. Railway Labor Executives' Ass'n andNational Treasury Employees Union v. Von Raab. Recognizing that urinalysis drug testing constitutes a search for Fourth Amendment purposes, the Court determined the constitutionality of the drug tests by balancing the governmental interest in the testing against the privacy interest of the employees and, in both cases, upheld the drug testing at issue. TheSkinner andVon Raab decisions provided guidelines for analyzing Fourth Amendment challenges to employee drug testing, and the lower courts are now in the process of applying and refining these guidelines. Constitutional challenges to employee drug testing programs have also been based on the due process clause and the equal protection clause of the Fourteenth Amendment and on the First Amendment's guarantee of freedom of religion. Unlike Fourth Amendment claims, however, these claims have rarely been successful.     

Small‐scale Inference: Empirical Bayes and Confidence Methods for as Few as a Single Comparison

Empirical Bayes methods of estimating the local false discovery rate (LFDR) by maximum likelihood estimation (MLE), originally developed for large numbers of comparisons, are applied to a single comparison. Specifically, when assuming a lower bound on the mixing proportion of true null hypotheses, the LFDR MLE can yield reliable hypothesis tests and confidence intervals given as few as one comparison. Simulations indicate that constrained LFDR MLEs perform markedly better than conventional methods, both in testing and in confidence intervals, for high values of the mixing proportion, but not for low values. (A decision‐theoretic interpretation of the confidence distribution made those comparisons possible.) In conclusion, the constrained LFDR estimators and the resulting effect‐size interval estimates are not only effective multiple comparison procedures but also they might replace p‐values and confidence intervals more generally. The new methodology is illustrated with the analysis of proteomics data.     

Are Google searches making the Bitcoin market run amok? A tail event analysis

This paper aims at detecting extreme value spillover between the large co-movements of Bitcoin returns and the rate of change in investor attention (for which Google search is used as a proxy). For this purpose, we use the concept of the Granger causality in tail event. Thus, we test whether positive, or negative, extreme values of rate of change in Google searches have a significant predictive power for negative, or positive, large values of Bitcoin returns, and vice versa . Our results shed light on a unidirectional causality effect from the returns to investor attention in the first place, before becoming bidirectional when the time delay increases.     

Monitoring risk in a ruin model perturbed by diffusion

We construct a nonparametric sequential test for the ruin probability and a corresponding change-point test in a risk model perturbed by diffusion. Some limiting properties are derived, which extend and improve on recent results of Conti (Stat Prob Lett 72:333–343, 2005) and Jahnke (Diploma thesis, University of Cologne, 2007). It is shown that the monitoring procedures can be designed such that the tests have an asymptotic prescribed false alarm rate (size) α and power 1. Some results from a small simulation study are also presented.