The importance of consistent drug policy and the case of Elon Musk and Tesla.

By Kirk Hardy, CEO, The Drug Detection Agency 

“Do as I say not as I do” is a cliché parenting adage, often used in benign circumstances such as having a chocolate biscuit before dinner. Elon Musk’s behaviour, however, is unacceptable for any employer with a drug and alcohol policy.

After Musk smoked marijuana on the podcast The Joe Rogan Experience, a former employee went to the media complaining that Musk had violated his own company’s policy. Crystal Guardado was fired from Tesla Motors after testing positive for THC, the active ingredient in cannabis. “Elon Musk is just smoking it out in the open,” Guardado told media company, Bloomberg, “knowing that he uses his very vague drug policy as a way to fire people that are a threat to him.”

This might fly under U.S. law, but in New Zealand or Australia you’ll be able to count on a personal grievance claim. Moreover, what does it tell your employees? 

When Musk appeared on the podcast, he was there as Elon Musk the CEO of Tesla Motors. Musk’s actions were in violation of his own policies, policies he and his company had used against their own workers. A seven-year-old would tell you that’s not fair, and in Australasia workplace polices must be enforced evenly across a workforce.  

My advice to employers in Australia and New Zealand

·      If you have a policy and drug and alcohol test at your company, everyone in your organisation should be tested. This includes C-suite and board members. When managing directors, CEOs, COOs, and board members submit and pass drug tests, they show an evenly applied drug policy and set the standard for employees.

·      Be transparent with your drug and alcohol policy. Make the policy easily accessible for employees by either, publishing the policy on your website or company intranet. Include a copy of the drug and alcohol policy in employment contracts along with other policies such as dress code and internet policies.

·      Enforce your policies evenly. Inconsistent enforcement leads to financial and reputational damage. People are more media savvy and have more ways to tell their stories today.  Improper procedure or dismissal leads to people talking to lawyers, the media, and on social media channels. None of it will help your company’s bottom line or reputation.  

Best practice drug and alcohol policy:

·      Have a policy, make it known, enforce it evenly. This is the best starting point!

·      Include an emphasis on rehabilitation as opposed to dismissal. It’s better (and cheaper) for a business to retain an employee instead of training a new one. 

·      Include drug education and training for managers, and policy reminders for workers.  

At the heart of the case against Musk is his show of disregard for his own policies. In one toke he demonstrated to his entire workforce that he uses drugs and that the rules don’t apply to him. It’s that simple.  

This attitude of being ‘above the law’ has now cost Telsa US$20m, and cost Musk his seat on the board. The Security and Exchange Commission went so far as to not allow him to be on any board of a public company. Companies must apply and enforce rules evenly, in and outside of drug and alcohol use, or expect to face poor outcomes. 

The Drug Detection Agency helps businesses design and implement robust drug and alcohol policies. We offer drug education sessions that train your managers and supervisors to understand your policy and identify those under the influence. We help businesses stay out of the bad situations Musk has found himself in.

TDDA has ISO15189:2012 accreditation for workplace drug testing in both New Zealand and Australia respectively (see NATA and IANZ websites for further detail). TDDA is considered to be a leader in its field with more than 50 locations throughout Australasia.

www.tdda.com