Honeywell's Wellness Program Violates ADA, GINA, EEOC Claims

Author: Gloria Ju

November 5, 2014

The Equal Employment Opportunity Commission (EEOC) filed suit on October 27 to temporarily stop Honeywell International from imposing surcharges on employees who refuse to submit to biometric testing as part of its wellness program. The EEOC claimed the testing violates the Americans with Disabilities Act (ADA) and Genetic Information Nondiscrimination Act (GINA). EEOC v. Honeywell International is the third lawsuit the EEOC has filed in as many months regarding an employer's wellness program.

On November 3, a district court judge denied the EEOC's request to temporarily halt Honeywell's practices. However, the decision does not necessarily indicate how the court may decide on the claims in the future.

Honeywell's wellness program requires employees (and their spouses, if they have family coverage) to undergo biometric testing, which includes a blood draw. The employees and their spouses would be screened for blood pressure, cholesterol, glucose, height, weight and waist circumference. They would also be checked for nicotine or cotinine. If an employee or the employee's spouse does not take the biometric test, the employee can be penalized up to a total of $4,000 based on:

  • The loss of up to $1,500 in health savings account (HSA) contributions from Honeywell;
  • A $500 surcharge applied to the employee's medical plan costs;
  • A $1,000 "tobacco surcharge" for choosing to not go through biometric testing, even if for reasons other than smoking; and
  • Another $1,000 "tobacco surcharge" for the spouse's nonparticipation in biometric testing, even if for reasons other than smoking.

According to the lawsuit, the biometric testing violates the ADA because it is not job-related or consistent with business necessity. Medical testing that is not job-related or consistent with business necessity does not violate the ADA if it is voluntary. In this case, the EEOC claimed that the testing was not voluntary due to the penalties imposed for nonparticipation.

The GINA charge pertains to the requirement that employees' spouses undergo medical testing to prevent the employee from losing inducements and incurring surcharges. The EEOC claimed that Honeywell is offering an inducement to employees to acquire genetic information in violation of GINA.

In a statement issued on October 29, Honeywell called the lawsuit "frivolous" and the EEOC "woefully out of step with the health care marketplace and with the core intent of the Affordable Care Act (ACA)." It defended its wellness program incentives as being "in strict compliance" with ACA and Health Insurance Portability and Accountability Act (HIPAA) guidelines.

The testing was set to begin on October 22 and continue through October 31. On October 16, two employees filed discrimination charges with the EEOC, which served the charges on Honeywell the same day. Because Honeywell would not agree to change its practices with respect to employees who decline to go through biometric testing or whose spouse declines to participate, the EEOC then filed the petition with the court.