In the absence of clear federal rules on how employers can incentivize health insurance programs, a lawsuit from Yale University employees puts a spotlight on measures that penalize some workers.
Like many large employers, Yale University gave its clerical, food service and maintenance workers a choice: Get a routine health check or pay a $25 weekly fee.
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But workers alleged in a federal lawsuit the university’s participate-or-pay employee wellness program violated two federal laws. In a preliminary settlement approved Tuesday by U.S. District Court in Connecticut, the university agreed to pay nearly $1.3 million to workers and attorneys and won’t assess the $25 weekly fee for four years, or until federal law or regulations change to allow such a program.
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