Court: Wellness programs must be voluntary or risk ADA claims

June 14, 2024

Wellness programs must be voluntary, or they risk violating the federal Americans with Disabilities Act (ADA), which restricts when employers may ask employees medical questions or require medical exams.

In a recent court case, an employer gave employees who participated in the company’s wellness program a discount on their group health care premiums. For some employees, the discount was almost $1,800 per year – a nice incentive (“carrot”). Part of the wellness program, however, included a biometric screening, which butted up against the ADA.

Those who did not participate in the program were not given the discount on their insurance premiums. Some of those employees felt this was more of a penalty (“stick”). They essentially felt punished for not participating, so they sued, vying for a class action ADA claim. They argued that the program violated the ADA’s rule prohibiting employer-based medical exams and inquiries.

In court

The core of the dispute surrounded whether medical exams in the wellness program were voluntary. The employees argued that the monthly charges imposed due to not completing the medical examinations were significant penalties, and thus, coerced employees to complete the exams. This, they claimed, rendered the program involuntary and, therefore, it violated the ADA.

The employer argued that employees who chose to undergo the medical exams merely received a premium discount. Therefore, it incentivized employees to complete the medical exams rather than punish those who did not. Employees had the choice, the employer claimed.

Voluntary not defined

The ADA does not define “voluntary.” The court turned to case law and found that a previous decision evaluated similar arguments. The court said a jury would need to decide if the wellness program was voluntary. Thus, the court denied the employer’s request to have the case thrown out, allowing it to proceed.

Therefore, the employer will need to continue to spend resources defending its wellness program.

Diment et al, v. Quad/Graphics, Inc and Rise Interactive Media & Analytics, LLC; Northern District of Illinois, No. 1:23-cv-1173, June 11, 2024.

Key to remember: Employers need to tread carefully when it comes to wellness programs, as whether they involve “carrots” or “sticks” can be tricky. The programs must be voluntary or risk violating the ADA and triggering an expensive claim.

Publish Date

June 14, 2024

Author

Darlene Clabault

Type

Industry News

Industries

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