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This paper explores employer attitudes towards drug testing in New Zealand to establish under what conditions adoption may be encouraged or discouraged. A survey of 162 New Zealand employers found that adoption rates of drug testing policies were low at 6 per cent. Exploring predictors of the likelihood of drug testing adoption in the next year found that firms that are more compliant to institutional pressures were more likely to seek adoption, as were firms that perceived positive benefits from adoption. Further, firms that perceived negative effects from drug testing, such as union pressures, were less likely to adopt drug testing in the future. Additionally, the moderating effects of organisational size was explored, and significantly affected likely adoption rates, with larger firms being more influenced by institutional pressures and positive effects. However, there was no significant moderation effect towards negative effects of drug testing, which remained strongly negative irrespective of organisational size. [ABSTRACT FROM AUTHOR]