Several weeks ago, the EEOC issued a Notice of Proposed Rulemaking (NPRM) that describes how Title I of the Americans with Disabilities Act (ADA) applies to employee wellness programs. The proposed rule amends the current ADA regulations to provide guidance to employers on how they may use incentives to encourage wellness-program participation, how disability-related inquiries should be handled and how medical examinations should be incorporated in to the programs. If you currently have or are considering implementing a new employee-wellness program, consider the following:

1. Focus on prevention and realistic goals– In order to be compliant with the EEOC and ADA, any company-sponsored wellness program must have a reasonable chance of improving health or preventing disease in participating employees. Work with your team to create a program that is easy to follow, will not be a burden to employees and allows your company to provide feedback to employees about their health risks and how they can improve their overall health.

2. Don't be forceful– While healthy employees tend to have better on-the-job performance and lower health insurance rates, no employer can force a team member to participate in a wellness program. Furthermore, should employees decide they don't want to participate, denying them health insurance, reducing health benefits or imposing any type of disciplinary measures will be sure to land you in the hot seat with the EEOC.

3. Be transparent and confidential– If you plan to collect medical information as part of your wellness program, you must provide employees with a notice that describes what medical information will be collected, who will receive it, how the information will be used and how it will be kept confidential. Prior to collecting this data, work to ensure that the individuals who are handling the medical information have a thorough understanding of how to manage encrypted and confidential electronic data and how to deal with a potential security breach.

4. Limit incentives– Under the new EEOC guidelines, the amount of incentives an employee can receive for achieving the goals set forth by a wellness program may not exceed 30 percent of the total cost of employee-only coverage. For example, if the total cost of coverage paid by both the employer and employee for self-only coverage is $5,000, the maximum incentive for an employee under that plan is $1,500. Keep this in mind when you are creating a reward system for your new wellness program.

5. Don't forget employees with disabilities– All wellness programs need to be designed to consider the needs of employees with disabilities. Disabled employees should have the necessary tools available to them to participate in and achieve the same goals as employees without disabilities. For example, if you have employees who are deaf or blind, you will probably need to provide them with a sign language interpreter, Braille information packet or other accommodation so that they can participate in the program. Regardless of their challenges, disabled employees should have the same opportunities to participate and earn incentives as their non-disabled coworkers.

Previously published in Phoenix Business Journal on May 5, 2015

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