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EEOC Proposed Rules Regarding Incentives in Workplace Wellness Programs

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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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EEOC Wellness Rules Proposed, Water Bottle Enthusiasts Rejoice | Seyfarth Shaw LLP

Genetic Information Nondiscrimination Act
GINA is generally intended to prevent employers from discriminating against employees on the basis of genetic information. The law broadly restricts employers from incentivizing employees to provide genetic information or to provide medical information about family members.
In 2016, the EEOC issued guidelines that established parameters for how employers may collect genetic information or information about family members without running afoul of GINA guidelines. Under those rules:
Individuals must provide a knowing, voluntary, written authorization prior to disclosing such information.
Employers may not offer an incentive that exceeds 30% of the cost of self-only coverage in soliciting genetic information from the spouse of an employee. ....

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