Drug-Free Workplace Act of 1998

Drug-Free Workplace Act of 1998 - Expresses the sense of the Congress that: (1) businesses should adopt drug-free workplace programs; and (2) States should consider incentives, such as tax deductions and reductions in premiums for workers' compensation and unemployment insurance, to encourage businesses to adopt such programs.

Amends the Small Business Act to establish a drug-free workplace demonstration program under which the Small Business Administration (SBA) may make grants, cooperative agreements, or contracts to eligible intermediaries to provide financial and technical assistance to small businesses seeking to start a drug-free workplace program. Requires each program to include procedures to ensure privacy protection for participating employees.

Directs the SBA Administrator to evaluate and report to the Congress on the drug-free workplace programs established under this Act. Authorizes appropriations for FY 1999 and 2000.

Requires small business development centers to provide information and assistance to small businesses for establishing such programs on or before October 1, 2000.

Authorizes the SBA Administrator to contract with and compensate government and private agencies or persons for the provision of services under this Act.

Directs the SBA Administrator to study and report to the chairmen and ranking members of the congressional small business committees on workplace drug use at small businesses, the costs associated with such illegal drug use, and the need for assistance to such businesses to develop drug prevention programs.