Corporate Wellness Blog

Even in an at-will employment environment, individuals are still guarded from discrimination (including wrongful termination) by virtue of belonging to a protected class. Before beginning a Employee Health Promotion Program, employers need to be alert to the relevant legal restrictions and the potential impacts these measures can have on benefi ts and employee behavior programs.

Title VII of the Civil Rights Act of 1964 – Prohibits employment discrimination based on race, color, religion, sex or national origin.

This means that standards and offerings need to be applied equally (or possibly proportionally) to all protected classes. In other words, if a company is offering access to health clubs, it must make sure that men and women have equal access to facilities. Organizations must also consider whether individuals who may live in areas heavily populated by one race, religion or ethnicity also have access to facilities and programs. The easiest way to address this concern is to support onsite Worksite Health Promotion Programs whenever possible. This not only ensures equal access, but according to Northwestern Memorial’s Krivy, also enhances participation.

Organizations must also be aware that particular health issues may disproportionately affect protected classes. Health Risk Assessments and any incentives/rewards put in place may have to be customized to account for non-lifestyle related differences.

The Equal Pay Act of 1963 (EPA) – Protects men and women who perform substantially equal work in the same establishment from sex-based wage discrimination. Benefits, incentives and programs need to be applied equally to men and women. A business can’t set a weight goal for men and not for women, even though a business can set health parameters by job function. The Age Discrimination in Employment Act of 1967 (ADEA) – Protects people who are 40 years of age or older from discrimination based on age.

Policies not only need to be available to individuals of all ages, but program goals, restrictions and incentives need to be designed with age appropriateness. While older workers (or retirees and dependents) may inherently pose a higher health risk, their actions ought to be judged in terms of demographically appropriate measures.

Title I and Title V of the Americans with Disabilities Act of 1990 (ADA) – Prohibits employment discrimination against qualified individuals with disabilities in the private sector, and in state and local governments. Similar to other workplace offerings, any Corporate Health Promotion Programs, such as a fitness center or health clinic, would have to make reasonable accommodations for employees with disabilities.

One area of ambiguity is whether very overweight employees qualify as disabled. The issue is complicated because weight is caused by several factors (genetics, environment, behavior), some of which may be out of the employee’s control. Generally, for employees to qualify for disability based on weight, the condition must signifi cantly impair their physical or mental ability to perform their job. This determination would need to be made by a qualifi ed physician. Although this label may affect the types of incentives and program requirements provided, it likely would not affect the overall implementation of behavioral-focused initiatives.

Civil Rights Act of 1991 – Provides monetary damages in cases of intentional employment discrimination.

This legislation permits individuals to sue employers for improper treatment. Compensation can be in the form of actual damages such as lost or expected wages, compensatory damages for a circumstance that causes public embarrassment, or even punitive damages meant to send a message to a organization for egregious or habitual violations.

While these laws govern all company activities, there are even more stringent restrictions with regard to Medical Care issues. Most policies, communications and data collection regarding employee health are governed by the Health Insurance Portability and Accountability Act of 1996 (HIPAA). Under HIPAA organizations can’t deny eligibility for benefits or charge a higher premium on the basis of:

• Health status
• Health condition (including both physical and mental ailments)
• Claims experience
• Receipt of healthcare
• Health history
• Genetic information
• Evidence of insurability (includes activities such as riding a motorcycle, skiing, snowmobiling and other similar pursuits)
• Disability

However, because wellness programs may not include health care treatment or be insurance related, and may instead be confined to behavioral initiatives, HIPAA’s nondiscrimination provisions do not totally apply. To address this, in 2001 the U.S. Department of Labor, the Internal Revenue Service and the U.S. Department of Health and Human Services jointly issued a proposed regulation to help clarify the lawful provisions of a “bona fi de Wellness Program” in the context of HIPAA’s existing language (See Box p. 14). Although the regulation is not yet final, companies that comply with the measure will be viewed by the government as making a good-faith effort to avoid discrimination in wellness programs.

Comprehensive Corporate Wellness Programs are still relatively new to corporate America and the legal implications of implementation and enforcement are not totally known. By their very nature, these programs potentially expose companies to discrimination lawsuits, disengaged employees and negative public relations. However, companies that make a good-faith effort to comply with current Medical Care-related laws, find ways to engage employees, and communicate strategically, will be able to minimize these risks while finding plenty of room to develop a creative and effective Corporate Wellness Program.