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This rule amends the regulations to implement the equal employment provisions of the Americans with Disabilities Act (ADA) to address the interaction between title I of the ADA and wellness programs.  On August 22, 2017, the U.S. District Court for the District of Columbia ordered the EEOC to reconsider its regulations under the ADA related to incentives and employer-sponsored wellness plans.  See AARP v. EEOC, Civ. Action No. 16-2113 (D.D.C. Aug. 22, 2017).  In accordance with the court’s ruling, the EEOC will consider and take actions to cure defects in the rule.  The final rule was published on May 17, 2016, (81 FR 31125) and completed in the fall 2016 agenda as RIN 3046-AB01.  

Statement of Need:

The revision to 29 CFR 1630.14(d) is needed in accordance with the District Court’s ruling noted above.

Summary of the Legal Basis:

The ADA requires the EEOC to issue regulations implementing title I of the Act. The EEOC initially issued regulations in 1991 on the law's requirements and prohibited practices with respect to employment and issued amended regulations in 2011 to conform to changes to the ADA made by the ADA Amendments Act of 2008.  The EEOC again issued regulations in May 2016 to address the interaction between title I of the ADA and wellness programs.  The U.S. District Court for the District of Columbia ordered the EEOC to reconsider these regulations in August 2017.  These new revisions are based on the court’s order, as well as the statutory requirement to issue regulations to implement title I of the ADA.

Alternatives:

The EEOC will consider all alternatives offered by the public commenters.

Anticipated Costs and Benefits:

Based on the information currently available, the Commission does not anticipate that the rule will impose additional costs on employers, beyond minimal costs to train human resource professionals. The regulation does not impose any new employer reporting or recordkeeping obligations. We anticipate that the changes will benefit entities covered by title I of the ADA by clarifying employers’ obligations under the ADA.

Risks:

The rule imposes no new or additional risks to employers. The rule does not address risks to public safety or the environment.