Beginning with the original executive order in 1986, drug-free workplace legislation has expanded its boundaries to include workers in private companies and state and local agencies and virtually all U.S. colleges and universities. This monograph reviews the Drug-Free Workplace Act of 1988 and its various implementing regulations from the standpoint not only of what the Act contains but also for what it omits. Noting that colleges and universities must comply if they accept funding under any federal grant or cooperative agreement, regardless of dollar amount, or federal contract of $25,000 or more, it spells out recipients' obligations to: (1) publish and circulate an anti-drug statement; (2) establish a drug-free awareness program; and (3) take certain steps to deal with employees convicted of drug-related, work-related crimes. The publication also notes that federal funding agencies can impose sanctions on contractors or grantees who file false certifications, fail to carry out measures defined by the terms of their contracts, or tolerate an unacceptably high employee conviction rate. Also briefly covered are the Department of Defense rules on the "drug-free work force." Appended is the text of Subtitle D of the Drug Free Workplace Act of 1988. (Contains 19 reference footnotes.) (CH)