ADA and Wellness Programs
The ADA prohibits employers from requiring employees to undergo medical examinations or answer disability-related questions unless the examination or inquiry is job-related and consistent with business necessity. Wellness programs that include HRAs (disability-related inquiries) or biometric screenings (medical examinations) must be voluntary to comply with the ADA.
The Voluntariness Question
The EEOC has not finalized regulations defining the incentive threshold for voluntariness under the ADA. The EEOC's 2016 regulations (which set a 30% limit) were vacated by a federal court in 2017. The EEOC issued new proposed rules in 2021 but has not finalized them. In the absence of final regulations, employers should use a conservative approach — limiting wellness incentives to 30% of employee-only premium.
Reasonable Accommodation
Compliance Note
Wellness programs must provide reasonable accommodations for employees with disabilities who cannot participate in the standard program. An employee with a physical disability who cannot participate in a step challenge must be offered an alternative way to earn the incentive. Document all reasonable accommodation requests and responses.