substance abuse treatment organizations and the associations between work experiences and alcohol consumption. Paul M. Roman is director of the center and a distinguished research professor of sociology at the University of Georgia. His research focuses on the organization of treatment systems and the design of intervention efforts for employees with substance abuse problems. J. Aaron Johnson is an assistant research scientist in the center. His research focuses on organizations and substance abuse, particularly the longitudinal effects of intra-organizational and external environment factors on changes within substance abuse treatment centers.Although research has explored the diffusion of drug testing as a management technique, little attention has been paid to how organizations manage employees who fail drug tests. Organizations can choose a strategy that externalizes or internalizes the drug-positive employee. Furthermore, those organizations that internalize drug-positive employees may respond in a rehabilitative or punitive manner. This paper explores the variation in organizational responses to positive drug tests by considering industrial sector, organizational structure, and culture. Using data from the 1997 National Employee Survey, multinomial logistic regression results indicate significant differences in organizational responses to positive drug tests based on the industrial sector, unionization, the provision of employee assistance program services, establishment size, and formalization.