OVERVIEW
The Equal Employment Opportunity Commission (EEOC) recently announced its plans to issue new proposed rules on permissible wellness incentives under the Americans with Disabilities Act (ADA) by the end of 2019.
In May 2016, the EEOC issued final rules addressing how the ADA applies to employer-sponsored wellness programs. The final rules included a 30% limit for wellness incentives. A federal court vacated this incentive limit, effective Jan. 1, 2019. Consistent with this court ruling, the EEOC removed the incentive limit from its final wellness rules.
The EEOC was expected to issue new proposed rules by June 2019, but the rules have been delayed. The EEOC’s spring regulatory agenda includes a deadline of December 2019 for the proposed rules.
ACTION STEPS
Until the EEOC issues new wellness rules, employers should carefully consider the level of incentives they use with their wellness programs. Employers should also watch for any developments related to the EEOC’s wellness rules.
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