An increasing number of business and public sector employers are requi
ring drug tests of employees and applicants, and tests often are condu
cted on other groups as well. One outcome of widespread testing is the
tendency to equate the rate of positive drug test results with the ac
tual usage mte for the target population involved. In this paper, we s
how that these two rates seldom are equal. We develop a simple model t
hat may be used to determine the actual rate of drug usage in a given
environment, based on drug test rates (reported rates) and laboratory
drug testing accuracy. We use recent data on drug test outcomes and la
boratory accuracy to illustrate the procedure. The results suggest tha
t the highest reported rates underestimate the actual rates; specifica
lly, the actual rates are 3-15% higher than the reported rates. Simila
rly, the lowest reported rates overestimate the actual rates; specific
ally, the actual rates are 10-55% lower than the reported rates. It is
not possible to determine the exact degree of mis-estimation for a pa
rticular case without knowing the applicable test rate and lab accurac
y level, but the aforementioned ranges give an indication of the possi
bilities.