Federal officials are challenging new benefit rules at Honeywell Inc. that create monetary penalties unless employees and spouses take medical tests.
A lawsuit filed by the Equal Employment Opportunity Commission in response to complaints from two Minnesota employees sets up a potential court case over how far employers can go to shift health costs and influence worker behavior. Honeywell is a major employer in the Kansas City area.
The agency said in the suit, filed Monday in U.S. District Court in Minneapolis, that new health screening and penalties at Honeywell violate the Americans with Disabilities Act and the Genetic Information Nondiscrimination Act.
“Employees will be penalized if they or their spouses do not take the biometric tests,” the complaint said.
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In response to the suit, Honeywell said its screening program is designed to encourage employees to live more healthfully and thereby create lower health care costs for themselves and the company. The company said the program complies with health care laws, including the Affordable Care Act.
The Equal Employment Opportunity Commission has requested a temporary injunction to stop the employee testing, which was scheduled to begin last week at various sites across the country.
Like other companies, New Jersey-based Honeywell embraced the emphasis on fitness and prevention to prod employees into better shape and to lower health-care-related costs.
The commission said Honeywell’s new program creates up to $4,000 in penalties for employees unless they and their spouses take blood and medical tests that can identify smoking, diabetes, high blood pressure, obesity and other health problems. They include the loss of $1,500 in company contributions to health savings accounts, a $500 medical plan surcharge, a $1,000 tobacco surcharge and a $1,000 spousal tobacco surcharge.
The suit is the third one in three months that the commission has filed accusing companies of setting up “involuntary” employee medical or wellness programs, said Laurie Vasichek, an attorney for the agency. Honeywell’s tests and threatened penalties go too far because they are not job-related and are not consistent with any business necessity, she said.
“The thing that is important about these cases is not that they are wellness or health programs, but that the company is requiring testing and asking disability questions when it’s not job-related,” Vasichek said. “They can only do that in situations where it’s voluntary for the employee to answer.”
According to the lawsuit, Honeywell announced the biometric testing program in August and September. The agency received complaints and subsequently asked the company to drop penalties for employees who didn’t submit to the tests. Honeywell didn’t agree to that, according to the suit.
In a statement, Honeywell denied any wrongdoing and said the screening and wellness program “are in strict compliance with both HIPAA and the Affordable Care Act’s guidelines.”
The company also said: “The Chicago EEOC office is unfamiliar with the details of our wellness programs and woefully out of step with the health care marketplace and with the core intent of the ACA to provide expanded access and improved health care to all Americans. The incentives in our wellness programs are pro-consumer and have delivered demonstrably better health care outcomes for employees and their families.”