In the first of three lawsuits brought by the Equal Employment Opportunity Commission (EEOC) to be decided on the merits, a federal court in Wisconsin has rejected the agency’s claim that an employer’s wellness program violates the Americans with Disabilities Act (ADA). The U.S. District Court for the Western District of Wisconsin ruled in EEOC v. Flambeau, Inc., No. 14-cv-638-bbc (December 30, 2015), that the employer’s wellness program lawfully falls within the ADA’s “insurance safe harbor,” despite the EEOC’s arguments to the contrary.
In 2014 the EEOC brought three separate ADA lawsuits challenging employer wellness programs (including the Flambeau lawsuit). The agency sued despite the lack of issuing any guidance on what kind of incentives or penalties may be used consistent with the limited exception contained in the ADA to the otherwise prohibited disclosure of confidential medical information if given in conjunction with participation in a “voluntary” wellness program.
Although subject to appeal, the Flambeau decision is important because it is the first on the merits and fundamentally rejects the EEOC’s interpretation of the ADA with regard to whether a wellness plan violates the law.