Yale reaches $1.29m settlement in employee wellness program lawsuit
Yale will cease collection of opt-out fees for four years and change its practices regarding the transfer of health data.
Yale University and some of its employees have agreed to settle a class-action lawsuit over its employee wellness program for $1.29 million, subject to court approval. Kwesell v. Yale University alleged that Yale’s Health Expectations Program violated federal statutes because it required employees and their spouses to either participate in its wellness program or pay a weekly opt-out fee.
“We designed the Health Expectations Program with our union partners and the advice of health care and legal experts,” said Stephanie Spangler, vice provost for health affairs and academic integrity. “Nevertheless, we feel it is best to resolve what would have been expensive litigation and move forward. Our relationship with our employees is an important priority.”
Related: Employee wellness programs and compliance: What to know right now
Yale implemented the program as part of a collective bargaining agreement with two of its unions, under which most union employees paid no premium for their health plan coverage. About 6,000 union employees and their spouses were required to either share their private medical information with their employer or pay a fine. By charging some employees $1,300 annually if they did not participate, the suit alleged that Yale violated both the Americans with Disabilities Act and the Genetic Information Nondiscrimination Act.
Under the settlement agreement, Yale will cease collection of opt-out fees for four years and change its practices regarding the transfer of health data in connection with the program. The settlement will be distributed among employees subjected to the program and pay plaintiffs’ attorneys’ fees and costs.
The AARP filed the lawsuit on behalf of Yale employees in 2019.
“This is a particularly important issue for older workers, who are more likely to have disabilities and medical conditions — such as diabetes, heart disease and cancer — that are at risk of being revealed by wellness questionnaires and exams,” AARP Foundation President Lisa Marsh Ryerson said at the time.
The foundation was pleased with the settlement.
“We believe participating in a wellness program should be entirely voluntary, with no element of coercion, financial or otherwise,” said William Alvarado Rivera, senior vice president for litigation.
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