The Equal Employment Opportunity Commission (EEOC) last week formally proposed revising its regulations under the Americans with Disabilities Act (ADA) and the Genetic Information Nondiscrimination Act (GINA) to further clarify the application of these two laws to corporate wellness programs and, in particular, the use of incentives in conjunction with such wellness plans.

The two separate proposals contain some good news and some bad news for employers who desire to utilize incentives in connection with their wellness plans. On one hand, the two proposals would establish general rules that significantly limit the use of most incentives. However, the impact of the proposed limits would be mitigated in some cases by the coverage rules under each proposal. In particular, the ADA proposal recognizes the so-called insurance safe harbor, which effectively provides an important exception for certain wellness programs that are part of or qualify as group health plans.

Members of the Center for Workplace Compliance (CWC) can read more here.