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Workplace Wellness Programs Raise Privacy, Discrimination Concerns

By / January 2, 2015 / Uncategorized No Comments

It’s a new year and that means many employees are focused on improving their health. Many will attempt to lose weight, reduce stress and stop smoking — all noble goals. And many may turn to workplace wellness plans for assistance.

Others won’t be interested and that’s fine, too. Employers can face penalties if programs are too invasive or not strictly voluntary.

Another concern employees have will be the security of their protected health information. Employers need to be sure wellness plans house data in as safe a manner as possible, even if they’re using an outside vendor.

This week I’ve been reading about a variety of issues that accompany workplace wellness plans. Here are a few articles to help you get up to speed.

Wellness At Work Often Comes With Strings Attached. NPR: “Under federal rules, wellness programs must be voluntary. But more than a third of large companies now use financial incentives, which include both rewards and penalties for those who don’t participate, according to the Kaiser Family Foundation survey. For example, at Penn State University last year, officials were forced to backtrack on a plan that would have required professors and other nonunion workers — and their spouses — to undergo comprehensive health screenings every year, including measurements of cholesterol, blood sugar and body mass.”

ACA Liabilities: Workplace Wellness Programs in Crosshairs of EEOC. JD Supra: “Employers implementing new wellness programs must look beyond the regulations of the ACA and carefully examine the compulsory effect of monetary penalties, if any, under anti-discrimination laws like the ADA and GINA. Moreover, the risk for class and collective actions based upon offending wellness programs is significant enough that both practitioners and liability carriers must begin tracking the emerging standard for compulsion so as to properly anticipate new liabilities and exposures going forward.”

“Time To Lose A Few Pounds”: Is Obesity A Workplace Issue? Fox Rothschild Employment Discrimination Report: “A new EEOC lawsuit (the EEOC’s second such suit) illustrates how an employer can get into trouble with wellness programs. The EEOC sued a Wisconsin manufacturer which ‘required an employee to submit to biometric testing and a ‘health risk assessment,’ or face cancellation of medical insurance, unspecified ‘disciplinary action’ for failing to attend the scheduled testing, and a requirement to pay the full premium in order to stay covered.’ When the employee did not complete the biometric testing and health risk assessment, the company cancelled his medical insurance and made him pay the entire insurance premium. On the other hand, the employees who completed these tasks were not subject to this ‘penalty.’”

Is PHI Security Strong Enough in the Workplace? HealthIT Security: “With the recent Sony Corp. hack, employees’ PHI (protected health information) security is also put into scrutiny. The cybersecurity breach released some workers’ medical information, along with that of their families. Two former Sony employees are suing the company, claiming that the organization knew that its computer systems were not properly secure, according to CNET.”

Sexually Active? How Much Do You Drink? Your Workplace Health Records May Not Be as Private as You Think. Bloomberg: “There hasn’t been a major hack of a wellness program’s health information, though breaches of other types of health information have occurred. Since 2009, there have been 1,187 incidents where health information protected by HIPAA was hacked, improperly disclosed, lost or stolen involving more than 41 million individuals, according to reports to the U.S. Department of Health and Human Services. Those cases only include instances where more than 500 records were involved. Matters involving fewer records don’t have to be reported.”

Want more information about important compliance issues to consider when implementing a wellness program at your workplace? Contact us.

HR Solutions is a human resources outsourcing firm based in Baton Rouge, Louisiana. We eliminate human resources headaches for businesses with 10 to 1,000 employees by handling their payroll, employee benefits, regulatory compliance and other staffing needs. Contact us to learn how we can streamline your company’s human resources function to save money and reduce risk.




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