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June 10, 2014
Are there legal risks in wellness programs?

Mark Jones, Esq., senior associate in the New York offices of the global law firm Pillsbury Winthrop Shaw Pittman, LLP, describes a workplace wellness program as employer-sponsored or employer–sanctioned activities aimed at helping employees stay healthy, avoid preventable illnesses, and replace bad health habits with good ones.

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These programs include:

  • Health risk assessments
  • Smoking cessation classes
  • Reimbursement of gym memberships
  • Flu vaccinations
  • Healthy food options in workplace cafeterias
  • Weight-loss programs
  • First-aid training
  • Cholesterol screenings
  • Health-related newsletters and brochures

Wellness programs are a growing movement. National surveys have shown that 77% of U.S. employers offer some type of workplace wellness activity for their employees. And, when asked in another survey if they saw the value in implementing wellness programs, 82% of small employers, 90% of midsize employers, and 99% of large employers said "Yes."

But there are legal risks associated with wellness programs. Despite their best intentions, workplace wellness programs can lead to unintended legal consequences for employers:

  • Health screenings, restrictions on employee conduct, and the collection of health information may violate the privacy rights of your workers
  • Some employees may believe they are subject to discrimination by wellness programs on the basis of their health status, disability or age
  • Wellness programs may clash with the fine print in collective bargaining agreements, individual employment contracts and plan documents
  • The denial of some wellness benefits may be challenged under health plan claims procedures, and the value of the benefits may need to be reported on Form 5500 and in employees' W-2s

Mark Jones, Esq., is senior associate in the New York offices of the global law firm Pillsbury Winthrop Shaw Pittman LLP (www.pillsburylaw.com). He focuses his practice on qualified plans and equity compensation arrangements for domestic and international clients. He advises employers on the full range of health care and medical benefits in the workplace, from drafting agreements and plan amendments to managing self-insured and multiemployer plans.

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