November 6, 2018
In August 2017, the United States District Court for the District of Columbia held that the U.S. Equal Employment Opportunity Commission (EEOC) failed to provide a reasoned explanation for its decision to adopt 30 percent incentive levels for employer-sponsored wellness programs. Subsequently, the Court decided to vacate, or void, the EEOC’s wellness rule effective Jan. 1, 2019, instructing the agency that its goal of revising the rule by August 2019, to be effective in 2021, is too slow.
As of October 2018, the EEOC intends to propose updates to the wellness regulations by June 2019. With the nullification of its regulation looming, the EEOC could either reissue the same regulations but provide more appropriate justification for why a 30% incentive is reasonable and voluntary, allow the regulations to remain vacated, or do something else — like issue completely new regulations.
Employers should continue to be compliant with the existing regulatory environment and take into account these considerations:
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