Yale University has agreed to settle a case regarding its employee wellness program. The program required employees and their spouses to participate in the program or pay a weekly opt out fee, which for some employees amounted to an annual payout of $1300.

Participation in the program required disclosure of personal health information. The plaintiffs sued Yale, alleging that the wellness program violated the Americans with Disabilities Act and the Genetic Information Nondiscrimination Act.

For wellness programs that include a medical inquiry or a physical examination – including inquiries and examinations that are part of a health risk assessment (HRA) – the ADA requires that, if an individual discloses protected health information, the disclosure must be voluntary. Individuals cannot be required to participate in the wellness program, nor can they be penalized for non-participation. And, when an incentive is to be provided for spousal participation in the wellness program, the EEOC rules require prior, knowing, and voluntary written authorization from the spouse to utilize their collected medical information.

Under the settlement agreement, Yale will stop collection of the weekly wellness program opt-out fees for a period of four years and change the wellness program practices. The Court is expected to formally approve the settlement on April 8.

This serves as an important reminder to plan issuers and sponsors to be mindful of the interaction of wellness programs and the requirements under the various applicable federal laws.

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