On January 25, 2017, in Equal Employment Opportunity Commission v. Flambeau, Inc., the Seventh Circuit rejected an EEOC challenge to an employer wellness program. The circuit court had the opportunity to address whether an employer’s wellness program was an involuntary medical examination pursuant to the ADA, 42 U.S.C. 12112(d)(4), but instead found the issues of statutory interpretation to be moot. As a result, employers are without what would have been welcome guidance on the ADA’s boundaries with respect to wellness programs.
Articles Discussing Workplace Wellness Programs.
AARP Suffers a Setback in its Challenge to the EEOC’s Wellness Regulations
As previously discussed, AARP has filed suit against the EEOC and challenged the agency’s wellness regulations. See http://www.disabilityleavelaw.com/2016/10/articles/ada/the-eeocs-2016-wellness-program-regulations-the-saga-continues/ On December 29, 2016, this challenge suffered a setback. In the December 29, 2016 Memorandum Opinion, U.S. District Judge John D. Bates denied AARP’s request for preliminary injunction and held that the regulations would take effect on January 1, 2017.
EEOC’s 2016 Wellness Program Regulations, The Saga Continues…
The EEOC’s 2016 wellness program regulations are once again under fire. On October 24, 2016, AARP filed a complaint against the EEOC in D.C. federal court challenging the EEOC’s rules relating to wellness programs. See AARP v. EEOC Specifically, AARP seeks a ruling that the 2016 Regulations relating to the Equal Employment Provisions of the Americans with Disabilities Act (the “2016 ADA Rule”) (29 C.F.R. §§ 1630.14(d)(3)) and Title II of the Genetic Information Nondiscrimination Act (the “GINA Rule”) (29 C.F.R. § 1635.8(b)(2)(iii)) are unlawful and request a preliminary injunction that would prevent the rules from taking effect on Jan. 1, 2017.
Federal Court Simultaneously Rejects and Upholds EEOC’s Positions on Wellness Programs – Rejects Employer’s ADA “Safe Harbor” Defense
In a much anticipated decision, a Wisconsin federal district court has granted Orion Energy Systems, Inc.’s summary judgment on the EEOC’s challenge to its wellness program design. See Sept 19, 2016 Decision and Order. While largely good news for Orion, the ruling creates even more confusion for employers seeking clarity on wellness program design principles. In short, the Court: 1) rejected the EEOC’s claim that the wellness program violated the ADA because it was “involuntary;” 2) upheld the EEOC’s position that the ADA’s “safe harbor” for insurance could not be used to defend the wellness program design; and 3) held there was a triable issue on whether the employer’s termination of an employee who refused to participate in the wellness program was unlawful retaliation under the ADA. The case lives on due to the retaliation claim but many employers are scratching their heads on what the ADA requires for wellness programs going forward.
Tax Consequences of Employee Wellness Programs
Employee wellness programs are all the rage.
An Employer’s Compliance Checklist to the EEOC’s Final Wellness Program Regulations
Employers implementing wellness programs have a number of laws to navigate: the Health Insurance Portability and Accountability Act of 1996, as amended (HIPAA); the Americans with Disabilities Act (ADA); and the Genetic Information Nondiscrimination Act (GINA), among others. Most companies are familiar with the requirements of HIPAA, which historically has been regarded as establishing the confines for employer-sponsored wellness programs.
EEOC Issues Final Rules on Wellness Programs
On May 16, 2016, the Equal Employment Opportunity Commission (EEOC) issued final regulations governing the treatment of wellness programs under the Americans with Disabilities Act (ADA) and the Genetic Information Nondiscrimination Act (GINA). The final regulations provide direction to employers regarding workplace wellness programs that comply with the ADA and GINA. Also, according the Commission’s press release, the guidance will help employers operate such programs consistent with applicable provisions of the Health Insurance Portability and Accountability Act (HIPAA), as amended by the Affordable Care Act (ACA).
Final Word on Employer Wellness Plans
Employee wellness plans are a hot item these days. Increasingly, wellness plans are seen as a benefit to both employees and employers alike. As many employers jump on the bandwagon of this growing health trend, they should be aware of the other legal implications of creating and implementing these programs within their company. For example, a popular topic ever since the EEOC issued its proposed regulations last year has been how employee wellness programs can comply with existing regulations such as the ADA and Title II of the Genetic Information Nondiscrimination Act (GINA). Well now it’s time for employers to take note because the EEOC has just finalized its rules in this regard.
(VIDEO) The Latest Legal Developments Involving Wellness Programs
Nexsen Pruet tax and employee benefits attorney Sue Odom has produced a new video looking at the latest legal developments involving wellness programs.
Another Win for Wellness: The Erosion of Voluntary Participation
Consider the following wellness program scenario: A company implements a program that incentivizes employees to take a health risk assessment and undergo biometric screening. The assessment asks questions about the individual’s medical history, diet, mental and social health, and job satisfaction. The screening measures the individual’s height, weight, and blood pressure, and involves a blood test. To encourage employees to participate in the program, the company offers employees a $600 credit toward their premiums. Does this sound familiar?
The Wellness Program Awakens: District Court Rejects EEOC Challenge in Flambeau
Wellness programs, already something of a force in the group health plan industry, received a shot in the arm at the end of 2015 when a federal district court in Wisconsin ruled that an employer may require compliance with a wellness program as a condition for participation in its group health plan, without violating the Americans with Disabilities Act (ADA).1
The Latest on Wellness Programs: EEOC Proposes Rule to Address Legal Hurdles Under the ADA
Wait a minute. You mean to tell me that, even if I follow the guidance issued under the Health Insurance Portability and Accountability Act of 1996, as amended (HIPAA), in implementing a “legally-compliant” wellness program, I might still violate the Americans with Disabilities Act (ADA)?
EEOC Issues Long-Awaited Proposed Rule on Employer Wellness Programs
On April 18, 2015, the Equal Employment Opportunity Commission (EEOC) issued a proposed rule on the treatment of employer wellness programs under the Americans with Disabilities Act (ADA). The proposed rule amends the ADA regulations and interpretive guidance to address the use of incentives to encourage employees to participate in wellness programs that include disability-related inquiries and/or medical examinations. While the rule provides a degree of certainty in the design and administration of wellness programs, questions remain about the impact the EEOC’s guidance will have on the future development of wellness programs.
Proposed Regs on Employer Wellness Programs
The vast majority of large employers offer some sort of wellness program, according to a recent survey. We’ve posted about the risks and benefits of these programs in the past. Now, more than ever, employers with such programs should take note. The EEOC recently issued its highly anticipated proposed regulations amending how the ADA applies to these increasingly popular programs.
EEOC Issues Proposed Regulations on ADA Application to Employer Wellness Programs
On April 16, 2015, the Equal Employment Opportunity Commission (EEOC) issued its highly anticipated proposed regulations amending how Title I of the Americans with Disabilities Act (ADA) applies to the increasingly popular employer wellness programs. The proposed rule is designed to provide guidance on the extent to which the ADA permits employers to use incentives to encourage employees to participate in wellness programs. The proposed regulations identify employee health programs, define the nature of a voluntary program, clarify the permissible incentives an employer may offer, and explain the notice and confidentiality requirements. Eighty-eight percent of employers with 500 or more employees offer some sort of wellness program, according to a 2014 survey of employer-sponsored health plans by Mercer, the benefits consultant.