Workplace Wellness Plans Offer Big Incentives, But May Cost Your Privacy

Because of a recent court decision, the size of the financial incentive your employer offers you in hopes of motivating you to lower your cholesterol or lose weight may soon shrink.

Workplace wellness programs that offer employees a financial carrot for undergoing health screenings, sticking to exercise regimens or improving their cholesterol levels have long been controversial.

Starting January 1, they may become even more contentious. That’s when a federal judge’s decision to overturn existing rules about the programs takes effect. The decision casts uncertainty over what the appropriate upper limit for these types of financial incentives should be — specifically when employers offer them to workers to participate in programs that require clinical testing or the disclosure of their personal health data.

Under the Americans with Disabilities Acts and genetic privacy law, an employer can’t force someone to disclose this kind of private information — any disclosure must be voluntary. The central question is how truly voluntary something is when a large financial incentive is attached.