Friday, April 17, 2015

EEOC Releases Proposed Rule Governing Workplace Wellness Programs

April 2015
By: James B. Sherman, Esq.

On April 16th the Equal Employment Opportunity Commission issued proposed amendments to its ADA regulations to address the growing use of workplace wellness programs. The EEOC will now entertain comments submitted by any interested parties, before issuing its final rule on the subject.  Therefore, employers currently using such programs to promote employee health while reducing insurance costs, as well as anyone contemplating the use of a wellness program in the future, should familiarize themselves with the proposed rule and take issue with them through timely submitted comments. 

A typical wellness program can include things such as nutrition classes, gym access, and weight loss or smoking cessation programs.  Some of these programs include health risk and biometric screening.  Additionally, some employers provide incentives to encourage participation, or for reaching certain health goals.  Although many employers who provide these programs are mindful of the Affordable Care Act when designing them, they may overlook other laws that can be implicated. In particular the Americans with Disabilities Act (ADA) generally prohibits employers from making disability-related inquiries or requiring medical examinations.  However, there is an exception for voluntary medical examinations and medical histories that are part of an employee health program available to employees at the work site.  The proposed regulations assume that at a certain point employer incentives for participating in a wellness program may be so substantial that they render an employee’s submission to disability-related inquiries or medical examinations as part of the program, involuntary and therefore unlawful under the ADA.

The EEOC states that its proposed regulations attempt to strike a balance between allowing some employee incentives for participating in their employer’s wellness program, while limiting the extent of the incentives so as to prevent what it terms “economic coercion” that could essentially force employees to disclose medical information involuntarily:

·         Incentives for voluntary participation in a wellness program that includes disability-related inquiries or medical examinations are capped at a maximum of 30% of the total cost of employee-only coverage (as a reward or a penalty).
·         “Voluntary” means that (1) employees are not required to participate; (2) coverage under any group health plan will not be denied or limited for non-participation; and (3) no adverse action or retaliation will be taken.
·         Notice regarding the medical information must be given to employees.
·         Medical information can only be disclosed to employers in the aggregate, except as needed to administer the health plan.

This proposed rule will be published officially in the Federal Register on Monday, April 20, and public comments will be accepted for 60 days, until June 19, 2015.

For a copy of this proposed rule, or for assistance with assessing any impact these regulations would have on an existing or planned wellness program, contact Attorney James Sherman, at (952) 746-1700, or email jasherman@wesselssherman.com.