White Paper

EEOC Issues Final Rule on Employer Wellness Programs

 
“Recently, the Equal Employment Opportunities Commission (EEOC) issued the final version of its rule regulating employer-sponsored wellness plans. The Final Rule limits the incentives that may be offered through a wellness program, defines what a "voluntary" program is for purposes of the Americans with Disabilities Act, and imposes additional notice and confidentiality requirements on employers. The Final Rule, which becomes effective January 1, 2017, applies to any program that asks disability-related questions or requires medical examinations regardless of whether an employer offers a group health plan.

By way of background, the Americans with Disabilities Act (ADA) permits employers to conduct medical examinations or inquiries if the examination or inquiry is: (1) job-related and consistent with business necessity; or (2) "voluntary" as part of an employee health plan. Employers generally use financial incentives or rewards to encourage participation in wellness programs. The EEOC position has been that a wellness program is "voluntary" as long as the employer neither requires participation nor penalizes an employee for not participating. However, until now the EEOC had not specifically defined a "voluntary" wellness program or addressed whether, or to what extent, a financial incentive or reward for participation would cause a wellness program to be involuntary.”

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Faculty

Daniel Simandl

Daniel Simandl

von Briesen & Roper, s.c.