Substance Use in the Workplace

July 28, 2025

Substance use doesn’t stay at home—it shows up at work, too. And when it does, it takes a heavy toll. From lost productivity to more sick days and safety risks, the impact of substance use in the workplace is substantial for both employees and employers.

People with substance use disorders (SUD) face significant stigma and often don’t receive the treatment they need. While 48.5 million Americans have a substance use disorder, only 15% receive treatment.

The toll of substance use in the workplace

Substance use in the workplace costs employers over $400 billion each year, but the real impact goes beyond dollars. Behind every statistic is a person who’s struggling, and the ripple effects touch teams, safety, and productivity. Challenges include:

#1 Employee suffering

Addiction can cause significant emotional distress for employees using substances and their families. Employees with a substance use disorder may struggle with using more than one substance. And about half of people with substance use disorders have another mental health condition such as depression or anxiety—a combination that requires specialized treatment.

Family members are also profoundly affected by a loved one’s substance use. Addiction can cause economic hardship, legal problems, emotional distress, and other struggles that impact the entire family.

#2 Higher health care costs

Substance use disorders contribute to escalating health care costs and use of emergency services. People with drug or alcohol problems are more likely to be hospitalized and stay longer than people without these conditions. They also visit the emergency department twice as much as their peers. And a Lyra Health survey of a Fortune 500 company found that health care spending was four to 10 times higher for employees with an alcohol use disorder.

Fortunately, treatment has been proven to reduce health care costs for employees and their families. Employees in recovery from substance use have lower health care utilization and costs, saving employers an average of $8,817 per employee per year. 

#3 Reduced productivity

Absenteeism among employees with alcohol problems is up to 8 times greater than other workers. Alcohol use disorders alone account for an estimated 232 million lost workdays each year. Whereas workers typically miss 15 days of work for unscheduled leave per year, employees struggling with drug use and related problems miss about 24.6. Those with a pain medication use disorder miss over 15 days per year on average.

#4 Higher turnover

Turnover is common among employees with substance use disorders. Thirty-six percent of workers with substance use disorders have had more than one employer in the past year, compared to 25% of employees without a substance use disorder. However, employees in recovery have the lowest turnover and absenteeism rates. Depending on the industry, companies that invest in drug or alcohol treatment resources may save an estimated $8,500 per employee in turnover and replacement costs.

#5 Co-worker safety

One in five workers say they’ve been injured or put in danger because of a co-worker’s drinking, or needed to work harder or for longer because their co-worker couldn’t complete a task due to substance use in the workplace. When people don’t feel safe at work, employee morale can suffer.

How to mitigate the impact of substance use in the workplace

Employers play an important role in preventing and identifying substance use in the workplace, and connecting employees to resources that can help. Here are a few steps employers can take to support workers struggling with drug and alcohol use and mitigate the impact of substance use in the workplace:

• Reduce stigma to create a culture of understanding, so people feel comfortable asking for help
• Promote a drug-free workplace through education, training, and effective policies
• Train managers to recognize when an employee may be struggling and connect them to available resources
• Make the process of getting help simple

Recovery begins with the right benefits

Addiction is a serious condition. Without the right support, it can take a toll on every part of a person’s life. Easy access to integrated, evidence-based care can turn lives around and build a healthier, more resilient workforce.

Learn more about the ways to address substance use in the workplace.

Download our guide

INFOGRAPHIC RESOURCES

1. A Substance Use Cost Calculator for US Employers With an Emphasis on Prescription Pain Medication Misuse
2. Office of Neuroscience Research
3. National Council on Alcoholism and Drug Dependence
4. Lyra Health survey of a Fortune 500 company
5. Alcoholism In The Workplace: A Handbook for Supervisors
6. The Workplace Impact of Alcohol Use Disorders
7. Drug Testing & Safety: What's the Connection?
8. Data on Opioids in the Workplace
9. NORC at the University of Chicago and the National Safety Council (NSC)