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When are wellness programs too punitive? EEOC says two companies crossed the line

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Employee wellness programs that encourage healthy lifestyles are all the rage, but some companies may be violating federal law with onerous penalties for workers who don’t participate, according to two lawsuits filed this year by the Equal Employment Opportunity Commission.

The most recent suit was filed last week against Wisconsin-based plastics manufacturer Flambeau Inc., report the Wall Street Journal (sub. req.), the Associated Press and an EEOC press release. The suits claim violations of the Americans with Disabilities Act, which generally bars required medical exams and disability-related inquiries by employers, according to the Wall Street Journal.

The suit claims Flambeau penalized employee Dale Arnold because wasn’t able submit to biometric testing and a health-risk assessment in 2011 while he was on medical leave for congestive heart failure. Arnold was told he would have to pay for his entire health insurance premium for while other employees only had to pay a quarter of the cost. His policy was canceled about six months later when he could no longer afford the premiums.

The other suit, filed in August, claimed Wisconsin-based company Orion Energy Systems required medical examinations and made disability-related inquiries as part of its wellness program. When employee Wendy Schobert declined to participate, the company required her to pick up her entire health-insurance premium and then fired her a month later, the EEOC alleges in this press release. BNA has a story.

The press releases quote John Hendrickson, regional attorney for the EEOC Chicago district. “Employers certainly may have voluntary wellness programs—there’s no dispute about that—and many see such programs as a positive development,” Hendrickson said. “But they have actually to be voluntary. They can’t compel participation in medical tests or questions that are not job-related and consistent with business necessity by canceling coverage or imposing enormous penalties such as shifting 100 percent of the premium cost onto the back of the employee who chooses not to participate.”

The Wall Street Journal sought comment from Orion, which declined to make a statement, and Flambeau, which did not return the newspaper’s call.