Vermont Bar Journal, Vol. 40, No. 2 Spring 2015, Vol. 41, No. 1 | Page 27

EEOC v. Flambeau, Inc. The EEOC had similar concerns in EEOC v. Flambeau, Inc., another recent case where the EEOC alleged that a wellness program violated 42 U.S.C. § 12112(d)(4) (A).24 Similar to the wellness plan in Orion, the employer, Flambeau, Inc., offered to pay 75% of their employees’ health insurance premiums if they agreed to undergo biometric testing and health risk assessments.25 The biometric testing, which began in December 2011, involved blood work and measurements, and the health risk assessment required that employees self-disclose their medical history.26 One of the employees, Dale Arnold, was unable to complete the biometric testing and health risk assessment on the day appointed by Flambeau because he was on medical leave and being treated in the hospital for cardiomyopathy and congestive heart failure.27 After Arnold returned from his medical leave, he tried to complete the required biometric testing and health risk assessment.28 His requests for the necessary materials and additional time were rejected and denied by Flambeau.29 Because Arnold did not complete the biometric testing and www.vtbar.org health risk assessment, he was required, as a penalty, to pay the entire premium cost for single coverage for his health insurance under COBRA.30 The EEOC alleged that Flambeau’s biometric testing and health risk assessment included disability-related inquiries and medical examinations within the meaning of the ADA.31 The complaint further stated that “Flambeau required Arnold [to] participate in medical examinations and inquiries that were not job-related or consistent with business necessity in violation of 42 U.S.C. § 12112(d)(4)(A).”32 The EEOC found Flambeau’s wellness program to be “involuntary” for employees because: 1) Arnold was subjected to termination of his health insurance and a financial penalty of having to pay the entire premium cost under COBRA to obtain reinstated coverage as a result of not completing the examination and inquiries; 2) Flambeau told Arnold and the other Flambeau employees that participation in the examinations and inquiries was “mandatory” to be on Flambeau’s “medical insurance”; 3) Flambeau told Arnold and the other Flambeau employees that fail- THE VERMONT BAR JOURNAL • SPRING 2015 ing to attend the testing at his or her scheduled time would result in “disciplinary action”; and 4) Flambeau in fact did not provide health insurance to new employees unless they submitted to examinations and inquiries, and did not offer health insurance to existing employees without the COBRA premium penalty unless they submitted to the examinations and inquiries.33 Similar to the EEOC’s concerns in Orion, the EEOC felt that the effect of Flambeau’s practices was to deprive Arnold of equal employment opportunities and otherwise adversely affect his status as an employee.34 Although Flambeau presented its wellness program as a way to promote health in its employees and reduce longterm health care costs, in practice it severely punished an employee with an expensive health care condition. Synthesizing the Orion and Flambeau complaints, it appears that the more a wellness program looks like a way of dispensing with or weeding out potential high health insurance claimants, the more the EEOC is going to consider the program in violation of the ADA. Promoting health is a positive thing but punishing workers for Designing Wellness Programs That Respect Employee Privacy cannot request their medical history even though they may exhibit high risk factors for chronic diseases down the road.23 27