Equal Employment Opportunity Commission v. Orion Energy Systems

Orion Energy Systems, Inc. (Orion) (defendant) switched from a fully insured health plan to a self-insured plan. As part of that process, Orion also developed and implemented an employee-wellness program that included three financial incentives for participation. One of the incentives required employees to choose between completing a health risk assessment (HRA) or paying the entire applicable monthly premium for health coverage without any employer contribution. The HRA consisted of a health-history questionnaire and a biometric screen that included a blood pressure check; height, weight, and body-circumference measurements; and a blood draw and analysis. Orion engaged contractors to perform the HRA. The contractors were medical professionals who were obligated to treat the employees’ medical information as protected health information subject to the privacy provisions of the Health Insurance Portability and Accountability Act. Orion received the data from the HRAs in an aggregated, anonymous format and did not have access to individual employees’ protected health information. Participants received their individual results from the HRAs. Orion stated that its reason for obtaining the aggregated data was to identify common health issues in order to offer educational tools and assistance to employees. The overall purposes of the program, according to Orion, were to improve the collective health and productivity of its workforce and to reduce healthcare costs. The Equal Employment Opportunity Commission (EEOC) (plaintiff) brought an action against Orion, alleging that the HRA violated the Americans with Disabilities Act (ADA) by requiring a medical examination that was not job related or consistent with business necessity. Orion and the EEOC filed cross motions for summary judgment.