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Wearable Technology Poses Workplace Discrimination Risks, EEOC Says

By Mark Decker posted 01-20-2025 07:36 AM

  

Wearable technology has become commonplace in society, as evidenced by the hundreds of millions of smartwatch users across the world. That trend extends to the workplace, and the U.S. Equal Employment Opportunity Commission (EEOC) recently released a fact sheet explaining how wearable technology can be implicated under federal discrimination laws. 

Wearable technology is defined as digital devices that are worn on the body. Using sensors, these devices collect biometric and medical information. In recent years, wearables were primarily smartwatches but have expanded to smart rings, glasses, glucose monitors, helmets, and other devices. The EEOC fact sheet explains how federal equal employment opportunity (EEO) laws can apply to employers and wearables.  

Employers Collecting Information 

The first concern highlighted is when employers direct employees to use wearables to obtain health-related information. This may cause compliance issues under laws such as the Americans with Disabilities Act (ADA). For instance, using wearables to collect data on an employee's physical or mental conditions (e.g., blood pressure monitors or eye trackers) or conducting diagnostic testing (e.g., EEGs) may constitute "medical examinations" under the ADA. Similarly, requiring employees to provide health information in connection with wearable use may be considered "disability-related inquiries."  

The ADA only allows medical examinations or disability-related inquiries when required by statute or regulation, the employee is in a public safety position, and the employee is voluntarily part of an employee health program that is reasonably designed to promote health and prevent disease. If one of these exceptions is not met, collecting such information from wearables may pose a compliance risk. Additionally, because the information collected from these devices may be considered medical information, it must be maintained in separate medical files and treated as confidential medical information.  

How to Use Information from Wearables 

If an employer collects information from wearables in a compliant manner, employers must still comply with EEO laws when using that information. EEO laws prohibit employment discrimination based on a protected characteristic: race, color, religion, sex (including gender, sexual orientation, and/or pregnancy, childbirth, or related medical conditions), national origin, age (40 or older), disability, or genetic information. If wearable-generated information is used to make employment decisions that have an adverse effect on employees because of a protected class they possess, employers could run into compliance issues. While this may be difficult to imagine, the EEOC fact sheet provided some helpful examples, including the following 

  • An employer using heart rate, fatigue level, or temperature information to infer that an employee is pregnant and then placing the employee on unpaid leave without their consent or terminating them. 

  • An employer relying on data from wearable technology that produces less accurate results for individuals with dark skin (race or color) to make adverse employment decisions against those workers. 

Additionally, if employers decide to use wearables, they should not selectively use them to monitor some employees based on protected characteristics or in retaliation against employees for engaging in protected activity.  

Exceptions Apply 

If an employer has a wearables policy, it may need to make an exception as a reasonable accommodation for religious belief, ADA, or under the Pregnant Workers Fairness Act, even if a wearable policy is permissible under the ADA. For example:  

  • The employer may need to excuse an employee from wearing a device if it is against their religion or provide an alternative. 

  • The employer mandating the use of a wearable device may need to make an exception or provide an alternative as a reasonable accommodation based on pregnancy or disability.  

Summary 

When employers are considering implementing a wearable policy, they should consider the following:  

  • If such a policy would be permissible under the ADA 

  • What data wearables collect, including their accuracy across different protected classes  

  • How data is stored  

  • Whether and how data is used in employment-related decision-making, including whether it impacts employees of different protected classes differently 

If you have any questions about implementing a policy on wearables, please contact Employers Council to speak with an attorney. 

Mark Decker is an attorney for Employers Council. 

 

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