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Drug-Free Workplace Act of 1988
Penalties

A contractor or grantee who fails to carry out the requirements of the Drug-Free Workplace Act of 1988 can be penalized in one or more of the following ways:

  • Payments for contract or grant activities may be suspended.
  • Contract or grant may be suspended or terminated.
  • Contractor or grantee may be prohibited from receiving, or participating in, any future contracts or grants awarded by any Federal agency for a specified period, not to exceed five years.

Compliance with the Act’s requirements is reviewed as part of normal Federal contract and grant administration and auditing procedures.

The Federal agency head is responsible for deciding whether a violation has occurred. If the contract or grant officer determines—in writing—that cause exists, an appropriate action shall be initiated and conducted in accordance with the Federal Acquisition Regulation and applicable agency procedures. For further information about compliance monitoring procedures, please contact the contract or grant officer in the agency from which the contract/grant was awarded.

To learn what actions would be grounds for these penalties, choose the situation that applies to you:

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