Coercive Incentives

The EEOC has proposed rules regarding wellness plans under the Americans with Disabilities Act (“ADA”) and Genetic Information Nondiscrimination Act (“GINA”). The proposed rules set a new permissible level of incentives (“de minimis”) for employee participation in wellness programs that include “disability-related inquiries and/or medical examinations.” The EEOC contends that the 30% limit in existence for other such programs violates ADA and GINA in this instance because employees might “feel coerced to disclosed medical information to receive an award or avoid a penalty.”

Business Takeaway: These rules are proposed and not final and, as such, public comment on the proposed rules will be accepted for 60 days following publication. If your program would be affected by these rules, please keep an eye out for additional information and a final rule. Contact Mark at 414-446-8800 or if you have questions on implementing or modifying a wellness plan.