Employees fight medical insurance screenings that cost some employees

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Within the absence of clear federal rules on how employers can incentivize medical insurance programs, a lawsuit from Yale University employees puts a highlight on measures that penalize some employees.

Like many large employers, Yale University gave its clerical, food service and maintenance employees a alternative: Get a routine health check or pay a $25 weekly fee.

But employees alleged in a federal lawsuit the university’s participate-or-pay worker 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 employees and attorneys and won’t assess the $25 weekly fee for 4 years, or until federal law or regulations change to permit such a program.

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