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How Big Can the Carrot Be? The EEOC’s New Proposed Rules Regarding Permissible Level of Incentives in Health-Contingent Workplace Wellness Programs
Wednesday, January 20, 2021
Many employers have established wellness programs to promote employee health and, in doing so, help counter the ever increasing costs associated with employer-sponsored health benefit plans. Often employers want to establish programs that provide employees with incentives to achieve certain health outcomes, such as smoking cessation or weight loss. Employers must exercise caution in creating such health-contingent wellness programs, which necessarily require employees to disclose health information, because the Americans with Disabilities Act (“ADA”) and the Genetic Information Nondiscrimination Act (“GINA”) prohibit medical inquiries unless there is a demonstrated business necessity or responding to the health inquiry is voluntary. ....

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