Smart Benefits: Is Your Wellness Program EEOC-Proof?
Monday, September 22, 2014
The Problem
According to the lawsuit filed by the EEOC, Orion Energy Systems instituted a wellness program that required medical examinations and made disability-related inquiries. Specifically, employees had to use a range-of-motion machine, provide their medical histories and have blood work done – all permissible if the information requested is job-related and consistent with business necessity or if it’s asked for in connection with a voluntary wellness program. But the EEOC claims Orion's wellness program violated the Americans with Disabilities Act (ADA) because it wasn't voluntary.
What’s Voluntary?
A wellness program is voluntary if employees are not required to participate and they are not penalized if they decide not to participate. While Orion’s wellness program was technically voluntary, meaning employees didn’t have to participate, those who didn’t take part had to pay 100 percent of their health insurance premiums out of pocket. If they participated in the program, the company paid 100 percent of the premiums.
According to John Hendrickson, regional attorney for the EEOC Chicago district, “They can't compel participation by imposing enormous penalties such as shifting 100 percent of the premium cost for health benefits onto the back of the employee or by just firing the employee who chooses not to participate. Having to choose between responding to medical exams and inquiries -- which are not job-related -- in a wellness program, on the one hand, or being fired, on the other hand, is no choice at all."
Beware
You can require medical exams or ask disability-related questions as part of a voluntary wellness program, but to avoid violating the ADA, just make sure your program’s actually voluntary.
Related Articles
- Smart Benefits: Plan Choice Key for Employers
- Smart Benefits: Communicating Healthcare Reform: Go by the Book
- Smart Benefits: Is United’s Wait Wise?
- Smart Benefits: The All-Payer Claims Database Will Capture it All
- Smart Benefits: What Matters to Employees?
- Smart Benefits: HSA Limits Will Increase in 2015
- Smart Benefits: Vision Coverage for Google Glass is Clear
- Smart Benefits: Employers Adapting to Private Exchanges
- Smart Benefits: Obamacare Extends Sign-Up for Exchanges… Again
- Smart Benefits: New Law Eliminates Limits on Deductibles
- Smart Benefits: Will Sebelius’ Resignation Improve ACA Rollout?
- Smart Benefits: CT Exchange Technology a Model for Other States
- Smart Benefits: Wellness Plans Weigh In On Obesity
- Smart Benefits: New IRS Publication Tells Individuals if They’ll Pay an ACA Penalty at Tax Time
- Smart Benefits: Popularity of HSAs Continues to Rise
- Smart Benefits: Are Skinny Plans Becoming a Big Draw?
- Smart Benefits: Two Regs Issued on Contraceptive Coverage
- Smart Benefits: Remember to Provide SBCs at Open Enrollment – or Pay
- Smart Benefits: IRS Releases Draft Forms for ACA Reporting
- Smart Benefits: 2015 Health Insurance Rates Approved
- Smart Benefits: IRS Issues Final Regulation on Small Business Tax Credit
- Smart Benefits: Despite Reform Mandate, Birth Control Coverage Ruled Optional
- Smart Benefits: FMLA to Revise Definition of Spouse
- Smart Benefits: Patient-Centered Outcomes Research Institute Fee Due July 31
- Smart Benefits: Are Double-Digit Premium Increases a Thing of the Past?
Follow us on Pinterest Google + Facebook Twitter See It Read It