EEOC Limits Incentives, Yet Wellness Programs Still Proliferate

Incentives are a popular way to get employees to engage with wellness programs. But the carrots and sticks employers can use in wellness programs have changed recently, thanks to final rulings from the Equal Employment Opportunity Commission (EEOC) on wellness program incentives.

A recent article in Financial Advisor explored the evolution of wellness programs in light of these EEOC rulings, which limit financial incentives to 30% of the cost of an individual’s health plan.

In spite of the limitations imposed by the rulings, wellness programs continue to proliferate. While penalties (sticks) are still used, they are less common than incentives (carrots), according to Jeff Levin-Scherz, north American leader of health management for Willis Towers Watson.

“Relatively few employers use penalties except for tobacco cessation,” Levin-Scherz told Financial Advisor. “Most employers express incentives as a reward rather than a penalty.”

For the complete article in Financial Advisor, click here.