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EEOC warns employers of wearable technology risks

  • Audit & Attest, Blog

By now, most of us have friends or family members who swear by their smartwatches or love to bust out their virtual reality (VR) glasses at parties. Such “wearable technology,” however, isn’t only for tracking your steps or exploring imaginary worlds. It has many practical uses in the workplace.

And therein lies a few problems, warns the U.S. Equal Employment Opportunity Commission (EEOC). In guidance released late last year, the agency explained to employers that requiring or allowing employees to use “wearables” at work could pose compliance risks.

Forms and functionalities

The different forms and functionalities of work-related wearable technology have really expanded over the last several years. Just a few examples are:

  • Fitness trackers that monitor biometrics such as heart rate and activity level to prevent overexertion and heat exhaustion,
  • Smartwatches that can track biometrics as well, but are also useful for communication and scheduling,
  • VR glasses that immerse workers in realistic digital environments, usually for training purposes,
  • Augmented reality glasses or head-mounted displays that overlay data over the physical environment for training or work purposes, and
  • Smart clothing embedded with sensors to monitor biometric data.

Carefully selected and implemented, these tools can help employers boost productivity, ensure safety and promote employee wellness.

Guidance warnings

The EEOC guidance, entitled Wearables in the Workplace: Using Wearable Technologies Under Federal Employment Discrimination Laws, describes itself as “a fact sheet [that] identifies some ways the federal equal employment opportunity (EEO) laws may apply to employers’ use of wearable devices.”

The guidance states that employers must manage wearables in the workplace in a way that respects and ensures employees’ rights under EEO laws, which include:

  • The Americans with Disabilities Act (ADA),
  • The Genetic Information Nondiscrimination Act (GINA), and
  • Title VII of the Civil Rights Act.

Noncompliance with these or other applicable laws can result in hefty fines, costly litigation and reputational damage.

According to the guidance, one major problem is that employers may inadvertently or otherwise collect information from wearables in a manner that constitutes “medical examinations” or “disability-related inquiries” under the ADA. Both are strictly limited under the law and may pose compliance risks.

The EEOC also cautions that some employers might use sensitive wearables data, such as biometrics or location information, to take adverse employment actions against employees. Doing so could violate ADA or GINA regulations in some circumstances. The guidance provides multiple examples.

Finally, the agency points out that overly broad wearable tech policies could expose employers to claims of discrimination or ADA accommodation failures. Such policies should include possible exceptions for employees with disabilities or religious objections.

Recommended steps

If your organization has or may have employees using wearable technology, a good first step is to conduct an internal audit to identify which devices are in use and what data they’re collecting. In the event you’re unsure of whether or how wearables are being used, your audit might need to begin with an employee survey on the subject.

As mentioned in the EEOC guidance, employers’ policies regarding wearables directly impact their compliance. Even if you don’t have a stated policy, how you’ve handled wearable tech up until now could constitute a policy. Your best bet is to gather your leadership team, along with a qualified attorney, and formulate a clearly worded, mindful policy for wearables use. Be sure to take heed of the EEOC’s recommendations.

From there, distribute the policy to everyone in your organization and ask them to sign an acknowledgment that they’ve received and read it. Also, train managers and supervisors to enforce the policy and issue regular reminders about it.

Proactive measures

Again, failing to address the risks of wearables can negatively impact your organization’s financial performance as conflicts, claims and even lawsuits develop. To read the full EEOC guidance, click here. And please contact us for help managing your organization’s technology costs and maximizing its value.

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