Energy firm settles ADA charges over wellness program

The U.S. Equal Employment Opportunity Commission has reached a $100,000 settlement with an energy company that allegedly violated the Americans with Disabilities Act by shifting responsibility for paying health care premiums to an employee who refused to participate in the program, then firing her.

The agency said when it filed the lawsuit in April that it was the first lawsuit to directly challenge a wellness program under the ADA. 

The EEOC had charged that when Wendy Schobert declined to participate in its wellness program Manitowoc, Wisconsin-based Orion Energy Systems Inc. shifted responsibility for payment of the entire premiums for her employee health benefits from the company to her, then fired her shortly thereafter.

The EEOC charged that Orion violated the ADA by requiring Ms. Schobert to submit to medical exams and inquiries that were not job-related and consistent with business necessity as part of an involuntary wellness program, and with retaliation against Ms. Schobert.

Under terms of the settlement announced Wednesday, in addition to paying $100,000 to Ms. Schobert, the company agreed it would not maintain any wellness program that poses disability-related inquiries or seek a medical exam that is not voluntary within the meaning of the ADA and its regulations, among other provisions.

“The EEOC supports employers and employees who want to explore ways to become healthier and to lower health care costs,” said Julianne Bowman, director of the EEOC's Chicago District Office, in a statement.   “Wellness plans must comply with the ADA and its regulations, however, as well as other laws dealing with them. Under this consent decree, Orion Energy can explore ways to help its employees and itself.”

A company spokesman could not immediately be reached.