DUI Cost to California Businesses

Drinking and Driving Costs California Businesses More Than $2.5 Billion Annually

Contact: Dawn Brogan (916) 444-8014
E-mail: 76435.125@compuserve.com

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(SACRAMENTO--September 6, 1995) -- Drinking and driving will cost California businesses more than $2.5 billion this year, according to a study released today by the California Coalition Against Driving Under the Influence (CaDUI).

The study -- conducted by a business school professor at California State University, Sacramento -- looked at a wide range of bottom line impacts associated with injuries, deaths and property damage caused by driving under the influence (DUI).

"DUI inflicts tragedy on society and extracts a tremendous cost from the state's employers and economy," said Lisa Dunn, corporate relations manager with Mitsubishi Motor Sales of America and CaDUI chair. CaDUI is a coalition of public and private sector groups allied in the fight against DUI.

More than 50,000 Californians were killed or injured last year in alcohol-related collisions. Most of these were employed.

"To put this in perspective," said Dunn, "The $2.5 billion loss is equal to $3,337 for every business in California, or $180 for every employee in the state. This is an unnecessary, preventable cost to businesses that hurts their bottom line profitability and competitiveness."

The study included costs for health and life insurance, lost productivity, higher recruitment and retraining expenses, workers compensation, sick leave, motor vehicle insurance, and other legal and liability costs.

While public attention has understandably focused on the tragic social consequences of DUI injuries and deaths, according to CaDUI, the economic impact on employers has been largely ignored. Unless an organization has a large driving fleet, DUI is often seen as an "off the job" problem and not part of the employer's business, even though employers pick up the high tab in health care costs, lost productivity, higher insurance, and other costs.

Since this is such an enormous problem for not only employers, but employees as well, the CaDUI is supportive of today's statewide launch of the Network of Employers for Traffic Safety (NETS). NETS, a public-private partnership dedicated to reducing traffic deaths and injuries within our nation's workforce, is being offered as a partial solution to reducing the high cost of DUIs to businesses. NETS California will provide employers with tools for promoting traffic safety messages at the work site.

"Blue Cross of California has always been dedicated to the philosophy that education and prevention go a long way toward saving money and averting tragedy," said Leonard D. Schaeffer, Chairman and CEO, Blue Cross of California, and NETS California member.

CaDUI urges employers to adopt strict anti-drinking and driving policies, and to educate employees and dependents about the dangers of DUI.

The CaDUI is a coalition that provides leadership, coordination and support to California's war against drinking and driving, and is comprised of government, private sector and citizen's advocacy groups. This economic study was paid for by a grant from the California Office of Traffic Safety.