Top  
 

Client Alert

ALLOWING MANAGEMENT THE ABILITY TO MANAGE

 

 

Labor and Employment Law Newsletter for Employers  May 2015
EEOC Releases Proposed Rule Governing Workplace Wellness Programs; Solicits Comments
By: Phoebe A. Taurick, Esq.

On April 16th the Equal Employment Opportunity Commission issued proposed amendments to its ADA regulations to address the growing use of workplace wellness programs. The EEOC will now entertain comments submitted by any interested parties, before issuing its final rule on the subject.  Therefore, employers currently using such programs to promote employee health while reducing insurance costs, as well as anyone contemplating the use of a wellness program in the future, should familiarize themselves with the proposed rule and take issue with them through timely submitted comments. 

A typical wellness program can include things such as nutrition classes, gym access, and weight loss or smoking cessation programs.  Some of these programs include health risk and biometric screening.  Additionally, some employers provide incentives to encourage participation, or for reaching certain health goals.  Although many employers who provide these programs are mindful of the Affordable Care Act (ACA) when designing them, they may overlook other laws that can be implicated. In particular the Americans with Disabilities Act (ADA) requires that employers provide reasonable accommodations to allow individuals with disabilities to have equal access to fringe benefits.  In addition, the ADA generally prohibits employers from making disability-related inquiries or requiring medical examinations, unless doing so is "job-related and consistent with business necessity."  However, there is an exception to this general prohibition for voluntary medical examinations and medical histories that are part of an employee health program available to employees at the work site.  The proposed regulations assume that at a certain point employer incentives for participating in a wellness program may be so substantial that they render an employee's submission to disability-related inquiries or medical examinations as part of the program involuntary, and therefore unlawful under the ADA.

 

Ryan M. Helgeson
E-Verify and Employers with Multiple Legal Entities
By: Ryan M. Helgeson, Esq.
 

Many employers are using E-Verify to electronically verify their employees' work authorization.  When employers sign up for E-Verify, they must complete the enrollment process, answering some basic questions about their company and signing a binding Memorandum of Understanding with the government.  One challenging issue that arises for many large employers is how precisely should they enroll in and use E-Verify across multiple legal entities?

 

If your business is spread across different subsidiaries or divisions, each organized as their own legal enterprise, you must be prepared to answer the following questions upon enrolling in E-Verify:
  • Which hiring sites will participate?
  • Who will manage the E-Verify responsibilities?
  • What will your company's E-Verify procedures be? 
United States Citizenship and Immigration Services ("USCIS"), the government agency that oversees E-Verify, provides very little guidance on these issues essentially leaving it to employers to determine their own strategy.  However, as is always the case, it is the employers that are liable for compliance with the E-Verify laws and that face liability for failure to abide by the rules and regulations.

 

  
ACA FAQ of the Month
What Do the EEOC's Proposed Amendments Mean for Wellness Programs?
Peter E. Hansen
By: Peter E. Hansen, Esq.
 

As many of you know, the ACA implemented final regulations in 2013 that significantly changed several aspects of employer-sponsored wellness programs, including design requirements, reward limitations, and the availability of "reasonable alternatives" to qualify for rewards. Now, nearly two years later, the Equal Employment Opportunity Commission ("EEOC") has released its own proposed rules that, perhaps unsurprisingly, include additional requirements.
With respect to requirements, the proposed rules require that wellness programs that include "disability-related inquiries or medical examinations" provide employees with a notice explaining what medical information will be obtained, who will receive the medical information, how the medical information will be used, the restrictions on its disclosure, and the methods the covered entity will employ to prevent improper disclosure of the medical information. The rules also limit wellness programs' financial incentives to 30% of the total cost of employee-only coverage, or 50% of the cost of coverage if the incentive relates to tobacco prevention or cessation.

To summarize, wellness programs implicate more than just the ACA - in fact, these new proposed rules would expose employers who comply with the ACA's obligations to liability under the ADA. As a result, employers who adopted or are considering adopting a wellness program must keep up with the ever-changing welfare plan landscape and, if possible, review their plans on an annual basis.

Questions? Suggestion for a future ACA FAQ of the Month? Please contact WS Attorney Peter E. Hansen at (262) 560-9696, or email [email protected].  

In This Issue
WS Quick Links

Join Our Mailing List

 

 

Like us on Facebook  Visit our blog

Our Offices
  
Dunham Center
2035 Foxfield Road
St. Charles, IL 60174
(630) 377-1554
  
20 N. Clark Street
Suite 1250
Chicago, IL 60602
(312) 629-9300
  
Willow Creek Plaza
9800 Shelard Parkway
Suite 310
Minneapolis, MN 55441
(952) 746-1700
  
1860 Executive Drive
Suite E-1
Oconomowoc, WI 53066
(262) 560-9696
  
101 West Second Street
Suite 307
Davenport, IA 52801
(563) 333-9102  
  
  
Walter J. Liszka
The Birds and the Bees
By: Walter J. Liszka, Esq.

As spring time approaches, it is a very good time for employers to give consideration of how to manage "office romances" and avoid potential liability that may result from them.  Remember that in the current and constantly changing work environment, these "office romances" may not just involve the traditional male and female (they may involve two members of the same sex), but all office romances must be treated the same way.
 
            Over the large number of years that the author has practiced labor and employment law, I have seen numerous employers attempt to eradicate this problem of office romances by an outright ban on those relationships.  In my experience in any workplace, "office romance" relationships are inevitable, regardless of the policies of the employer.  To have a policy that outright bans these relationships is not only unrealistic but totally ineffective - such policies merely force the employees to go "underground" and hide their relationship and lie to their employer and fellow employees to cover their tracks.  This leads to a less productive and unhappy workforce.  If you have a policy banning any relationships, once you as the employer become aware of these relationships (rest assured that your employee staff has been aware of the relationship for a lengthy period of time prior to your knowledge), you have to turn around and fire both employees.  If you do not fire them, you give the clear impression that "you pick and choose" when to enforce rules - never a good impression for your employees and a potential morale killer!  This is a completely backward situation and must be avoided.     
 
Upcoming Events
For more information or to register for any of the following Wessels Sherman events, please feel free to click on the provided hyperlinks below or contact any of our offices.
Eye on Labor Report
Get your weekly union updates!
  
Wessels Sherman has always been a leader in providing interested clients with current information on the labor scene in the Upper Midwest and on a national level.
  
In keeping with our firm's committment to these goals and providing our clients with useful information on what unions are doing and what is happening at the National Labor Relations Board (NLRB), we have developed an amazing source of the most current information available - our "Eye On Labor."

View a sample Eye on Labor report.  This report is available to interested clients in a convenient emailed format, each week, for free. Reply to Lisa Narug to start receiving these weekly reports right away... again, absolutely for free.

Reply to: Lisa Narug at [email protected] 

About the Client Alert
The attorneys of Wessels Sherman have the superior experience, knowledge and leadership to aggressively represent your business nationwide, including St. Charles, Chicago and Cook County, Illinois; Oconomowoc, Wisconsin; Minneapolis, Minnesota; Davenport, Iowa and the entire Quad Cities area.
  
Editors:
CLIENT ALERT Editor-in-Chief.....Walter J. Liszka
Minnesota........................................James B. Sherman
Wisconsin.........................................Alan E. Seneczko
Iowa..................................................Joseph H. Laverty
Illinois..............................................Nancy E. Joerg
  
WS Client Alert is a complimentary newsletter published periodically for clients and friends of Wessels Sherman. We reserve the right to limit distribution of our materials to representatives of management. The materials in this newsletter have been abridged from a variety of sources and are not necessarily applicable to a particular situation. The contents of this mailing should not be construed as legal advice. State laws vary. Readers should consult with legal counsel before taking any action on matters covered by this mailing.