United States District Court, D. Minnesota
Laurie Vasichek, Esq., Equal Employment Opportunity Commission, Minneapolis, MN, on behalf of Plaintiff.
Michael Burkhardt, Esq., Morgan Lewis & Bockius LLP, Philadelphia, PA, on behalf of Defendant.
MEMORANDUM OPINION AND ORDER
ANN D. MONTGOMERY, District Judge.
On November 3, 2014, the undersigned United States District Judge heard oral argument on the Equal Employment Opportunity Commission's ("EEOC") Motion for a Preliminary Injunction [Docket No. 2] against Honeywell International, Inc. ("Honeywell"). As articulated at the hearing, and for the reasons discussed below, the EEOC's motion is denied.
The EEOC seeks to immediately enjoin Honeywell from levying all penalties and costs-including withholding Health Savings Account ("HSA") contributions-against any Honeywell employee who refuses to undergo biomedical testing in conjunction with Honeywell's corporate wellness program. The EEOC does not allege that Honeywell's wellness program violates employees' right to privacy in their medical information, nor does the EEOC request that the Court order Honeywell to cease the biometric testing associated with its wellness program.
A. Honeywell's Corporate Wellness Program
Honeywell employees and their families have the option of participating in Honeywell's High Deductible Health Plan ("HDHP"), a self-insured group plan sponsored by Honeywell. Gregg Decl. [Docket No. 21] ¶ 3. HDHP enrollees can choose to participate in Honeywell's wellness program, which is designed to inform participants about their health status, encourage improvement of specific health goals and ultimately reduce claim costs. Id . ¶ 8. Employees who participate in the wellness program agree to undergo biometric testing. Id . ¶ 10. Employees who choose not to participate in the wellness program are not disciplined or terminated, but they are subject to financial surcharges. Id . ¶ 9 and ¶¶ 19-20.
Honeywell works with an independent third-party actuarial firm to perform underwriting analysis of its health plan each year. Id . ¶ 44. Analysis of past claims informs the future design and pricing of Honeywell's health plan, including its wellness program. Id.
1. Biomedical Testing
The biomedical testing administered as part of Honeywell's wellness program requires a blood sample that is screened for the following data: blood pressure; height; weight; waist circumference; and cholesterol, glucose and nicotine levels. Id . ¶ 11. Employees and their spouses can complete the biomedical testing for free through Quest Diagnostics ("Quest") or, in the alternative, employees can have their personal physician fill out a form indicating the basic health data identified above. Id . ¶ 14. Quest relays the collected data to an independent health management company; Honeywell receives aggregate data but is not informed of individual employee test results. Id . ¶ 16.
2. Incentives and Surcharges
Employees who participate in the wellness program become eligible for a HSA. Id . ¶ 19. This incentive is available only for employees whose annual salary is below $100, 000. Id . Honeywell's annual contribution to the HSAs of qualified employees ranges from $250 to $1, 500. Id . ¶ 9. Employees who choose not to participate in the wellness program do not qualify for a company-sponsored HSA and must also pay a $500 surcharge that goes toward their annual health insurance contribution. Id . This amounts to a pre-tax monthly ...