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ARTICLE · 26 SEPTEMBER 2013

Carrot Or Stick? When Does A Voluntary Wellness Program Become Involuntary?

Pepper Hamilton LLP
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Employer wellness programs, which are designed to stem rising health care costs by encouraging healthy behaviors among employees, are rising in popularity.

United StatesEmployment and HR
Susan Lessack
Susan Lessack

Employer wellness programs, which are designed to stem rising health care costs by encouraging healthy behaviors among employees, are rising in popularity. Such programs will receive another boost when certain provisions of the Affordable Care Act take effect next year. However, it is possible that employers offering wellness programs that comply with the Affordable Care Act may still run afoul of other federal laws, such as the Americans with Disabilities Act (ADA).

Employers are increasingly using financial incentives, such as discounted health coverage, to drive employee participation in wellness programs. This raises a critical question: at what point is the financial incentive to participate or the penalty for nonparticipation so great as to render a wellness program involuntary – and perhaps more to the point, how does the Equal Employment Opportunity Commission (EEOC) define that tipping point?

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