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In: Operations Management

Hyewon Kim owns her own catering business. She continually monitors her other expense costs, including the...

Hyewon Kim owns her own catering business. She continually monitors her other expense costs, including the cost of liability insurance for drivers of her catering vans. This year, Hyewon’s auto insurer advises her that insurance rates for her coverage will increase by 15 percent next year. The insurance company also states that if Hyewon will institute a preemployment drug-testing program for those employees who will drive her vans, there will be no insurance rate increase. Hyewon does not currently require potential employees to agree to be drug-tested prior to becoming employed in her business, but it is legal to do so in her state. What should Hyewon tell potential employees about her reason for implementing a preemployment drug-testing program? What should she do if a potential employee refuses to agree to the test?

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A Thumbs Up! Would be really helpful for me. If you have any questions, please leave a comment and I will get back to you as soon as possible.

Here we will discuss the case of Heywon Kim, where Heywon had a condition to implement a pre-employment drug test for employees to avoid the increment of 15% insurance rate next year. This arose in some cases such as if Heywon has legal rights to implement this pre-employment drug test, what would Heywon tell his employees about this test, and what if any potential employee refuses to agree to the test.

Yes, according to many types of research and reports, an employer has legal rights to implement the pre-employment drug test. In her state, it is definitely allowed to do a pre-employment drug test on employees. Doing a pre-employment drug test, wouldn't let her fall in any legalities.

Heydon should tell the truth to the potential employees so that the employees would understand our condition for implementing the drug test. When the employees being told truth it would also empower the relationship between her and her employees. In this state, if the potential employer refuses to agree to the test even if she told the truth then she has a property right to terminate that employee according to the legal law of drug testing.


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