A federal commission has determined companies can financially incentivize employees for taking care of their health as long as any penalties or rewards don't exceed 30 percent of the cost for individual insurance coverage.

The announcement Monday by the U.S. Equal Opportunity Employment Commission was latest salvo in an going policy fight between business groups pushing for expanded use of workplace wellness programs and consumer advocates who claim such programs are a violation of employee civil rights. Neither side was enthused by the EECO's decision.

"Simply put, EEOC—which has no health care expertise and extremely limited jurisdiction over wellness programs—has created rules that layer complicated, confusing, and contradictory requirements over an area which is already heavily regulated," said Randy Johnson, senior vice president of labor, immigration and employee benefits for the U.S. Chamber of Commerce. http://uscham.com/1TVxiJ3

Under a workplace wellness program, employees submit to regular health checks that are used to determine whether they are penalized or rewarded for being in good health. Rewards could come in the form of lower insurance premiums, for example.

The new rules were crafted to comply with existing laws to prevent discrimination based on disabilities and genetic history, but some consumer advocates said they actually were a step backward in protection for workers.

"Voluntary inquiries can now come with steep financial penalties, according to the EEOC, for choosing not to answer. That's a troubling precedent for the application of civil rights laws," Jennifer Mathis, director of programs for the Bazelon Center for Mental Health Law, told PBS News Hour. http://to.pbs.org/1TlDfBR

Business Roundtable, one of the major champions for expanding wellness programs, issued a neutral statement after the release of the rules, saying it needed to review them.

"The wellness programs many leading employers have put in place are making progress in helping employees and their families be healthier and better understand potential risk factors," said Brian Moynihan, chair of Business Roundtable's Committee on Health and Retirement. http://bit.ly/1Tl3nOt

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