Revising Workplace Wellness Rules Poses Conundrum for EEOC
The U.S. Equal Employment Opportunity Commission lost a fight in court over its workplace wellness rules but there are still questions lingering over a solution—particularly given the Trump administration's new leadership at the agency could shift intentions. The agency and the AARP, which challenged the rules, are now fighting over the next steps.
September 28, 2017 at 05:06 PM
3 minute read
The U.S. Equal Employment Opportunity Commission lost a fight in court over workplace wellness rules but there are still questions lingering over a solution—particularly given the Trump administration's new leadership at the agency could shift intentions.
In August, a federal judge in Washington sided with the AARP in a lawsuit that challenged rules that would allow employers to incentivize or penalize employees for programs targeted at improving health. Such programs have become increasingly popular at companies because a healthy workforce can lower insurance costs.
In an unusual move, the judge did not vacate the wellness rules, but rather gave the agency the chance to redo them. This left open questions about how long it would take for the agency to recraft the rules. The EEOC and the AARP have spent weeks now arguing back and forth about the best approach.
The agency argues that vacating the rules entirely would leave companies scrambling and 170,000 enrollment guides would have to be tossed out. The AARP argues that any delay essentially allows the rules—which the court said would allow employers to illegally access private health information and violate federal discrimination laws—to be in place for years.
A recent report from the agency suggested one plan that would create new regulations by October 2019, and those rules would be implemented in 2021.
U.S. District Judge John Bates of the District of Columbia refused to outright vacate the EEOC's rules, saying that such a move would be “disruptive” to companies. The AARP has suggested it would be possible for companies to comply with new regulations by 2018.
In the backdrop of this debate is the new makeup of the EEOC. Two likely new EEOC members—chair nominee Janet Dhillon, former general counsel to Burlington Stores Inc., and Daniel Gade, a former Iraq veteran—will shift the majority of the commission to Republican control. Dhillon and Gade appeared last week in the U.S. Senate for their confirmation hearings.
The AARP's Dara Smith points out in her brief to the court, “The EEOC identifies several factors each of which may very well extend the length of the rulemaking process beyond this tentative schedule: the commission's changing composition, the possibility of a stay pending appeal, and other necessary administrative processes.”
The EEOC's proposal, according to the AARP's court filing on Thursday, would “permit employers to violate workers' civil rights for at least three more years. While the agency surely needs time to complete a new rulemaking, employees and their families must not suffer the consequences in the interim,” Smith wrote.
The EEOC, represented by the U.S. Justice Department in the lawsuit, acknowledged last week that the agency's “intentions could change” amid new leadership.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllNLRB Bans 'Captive Audience' Meetings, Yanking Away Platform Employers Used to Combat Unionizing
3 GOP States Join Paid Sick Leave Movement, Passing Ballot Measures by Wide Margins
5 minute read'Sharp and Profound' Policy Shifts Prompt DC Law Firms to Evaluate Opportunities, Challenges
5 minute readSupreme Court Appears Hostile to Higher Burden for Employers in FLSA Cases
Trending Stories
- 1Elon Musk Names Microsoft, Calif. AG to Amended OpenAI Suit
- 2Trump’s Plan to Purge Democracy
- 3Baltimore City Govt., After Winning Opioid Jury Trial, Preparing to Demand an Additional $11B for Abatement Costs
- 4X Joins Legal Attack on California's New Deepfakes Law
- 5Monsanto Wins Latest Philadelphia Roundup Trial
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250