The Federal government enacted the Drug-Free Workplace Act of 1988 (P.L. 100-690, Title V, subtitle D) that simply stated that a drug free workplace was required of any organization or individual contracting with a Federal agency in contracts over $25,000. It did not, however, say anything about alcohol or drug testing.

The Omnibus Transportation Employee Act of 1989 added some strength to the Federal programs by mandating drug testing. In 1994, alcohol testing was also added. In sum, any organization wanting to contract with the federal government for services or products must be able to demonstrate they enforce a drug-free workplace by having and implementing an alcohol and drug testing program. Because many larger private sector organizations will follow federal standards, some organizations may also have similar expectations of those they affiliate and do business with.