Employers are exploring how devices like smartwatches, rings, helmets, and other “wearables” can reduce injuries, boost performance, and track employee productivity. While these tools can yield significant benefits, they also carry legal risks if employers collect or use personal data in ways that violate anti-discrimination laws. Below, we’ll explore the key considerations and best practices for adopting wearables at work while staying compliant.
Why Wearables Are On The Rise
Nearly two-thirds of employees would be willing to use wearable devices if it helped them do their jobs better. From a smartwatch that monitors employee fatigue to an exoskeleton that relieves physical strain, wearables can drive tangible advantages:
- Improved safety: By flagging early signs of fatigue or discomfort, wearables can prevent injuries in high-risk industries like construction and manufacturing.
- Enhanced productivity: Smart glasses and helmets can deliver real-time instructions or detect errors on the line, reducing downtime.
- Worker well-being: Many companies use devices to encourage healthy habits (step counting, heart rate monitoring, etc.) as part of broader wellness initiatives.
But There’s A Legal Catch
Recent guidance from the U.S. Equal Employment Opportunity Commission (EEOC) warns that employers must tread carefully when using wearable devices that collect health or biometric data. Certain data collection may be considered a “medical examination” or “disability-related inquiry” under the Americans with Disabilities Act (ADA) – and the ADA has strict limitations on when, why, and how such examinations may occur.
Potential ADA Pitfalls
- Unintended medical exams:
If your device tracks an employee’s heart rate, blood pressure, or other physical/mental conditions, you may be inadvertently conducting an ADA-governed “medical examination”.
- Disability-related inquiries:
If you require employees to explain certain health metrics or conditions revealed by the wearable, you could be making disability-related inquiries, permitted only under tightly defined circumstances (e.g., job-related and consistent with business necessity).
- Data storage:
The ADA mandates that any medical or disability-related data be stored separately from general personnel files and treated as confidential.
Nondiscrimination Obligations
Employers must also comply with other federal and state EEO laws, such as Title VII, the Pregnancy Discrimination Act, and the Genetic Information Nondiscrimination Act (GINA). For instance:
- Unequal impact: If wearable data is less accurate for employees with darker skin, but you use that data to make adverse decisions, it may constitute unlawful discrimination.
- Pregnancy or family health: Firing or reassigning a pregnant worker based solely on wearable-collected health data could lead to a discrimination claim.
- Genetic information: Accidentally gleaning details about an employee’s family medical history can violate GINA if the information is used to make employment decisions.
How To Adopt Wearables Responsibly?
- Define your purpose – then limit collection
Ask yourself: Why am I using wearables? Is it purely safety-related (e.g., identifying high-risk behaviors), or is it also about wellness incentives? Nail down the rationale, then collect only the data points necessary to achieve that goal. Using a watch or band just to see if people are “working hard enough” can quickly cross into ADA or privacy minefields.
- Keep it voluntary or prove “business necessity”
Most safety-related wearable usage in high-risk jobs can often be justified as job-related and consistent with business necessity. Otherwise, keep your program voluntary. When wearables are part of an optional wellness program:
- Ensure it’s truly voluntary: Establish that there is no undue pressure or negative consequences if an employee opts out.
- Offer an alternative: Provide a reasonable accommodation or alternate method for employees who can’t or won’t use the device.
- Protect confidential data
Whether you’re collecting heart rate or geolocation, treat it like the sensitive information it is:
- Segregate medical files: If the data is health-related, store it in separate medical files as mandated by the ADA.
- Control access: Only authorized personnel (such as human resource (HR) or occupational health staff) should view personally identifiable health data.
- Prevent illegal disclosures: Don’t share health metrics with managers responsible for promotions or discipline, unless there’s a strict, lawful need to know.
- Avoid disparate treatment
Ensure that wearable policies apply across the board, or at least follow a clear, neutral standard (e.g., all forklift operators or all employees in a certain high-risk area). Requiring only one demographic group to wear a device could be discriminatory.
- Communicate openly about privacy
Transparency fosters trust. Let employees know:
- Exactly what data is being collected.
- How it’s used (Safety metrics? Wellness incentives?)
- Who sees it and why.
- What their rights are if they have concerns or want to opt out, if applicable.
In some states, like California, you may also need to provide formal notice outlining these details.
Balanced Risk And Reward
If done right, workplace wearables can be a powerful tool for:
- Reducing on-the-job injuries
- Boosting efficiency
- Improving employee wellness
But any data that touches health or biometric details is legally sensitive. The U.S. EEOC’s latest fact sheet underscores how crucial it is for employers to align wearable usage with anti-discrimination and disability accommodation laws.
How GMS Can Help
- Policy review and crafting: Our HR experts can design wearable device policies that comply with ADA, GINA, and state-specific laws.
- Compliance training: We’ll train managers to avoid discriminatory practices, from collecting the wrong data to using metrics for improper reasons.
- Secure data management: We’ll provide proprietary technology for storing health-related information confidentially and prevent unauthorized access.
By partnering with Group Management Services (GMS), you’ll have a team that understands the complexities of workplace tech adoption. We’ll help you implement wearables in a way that safeguards employee privacy, reduces risk, and promotes a safe, productive environment.
Contact GMS today to learn how our HR and compliance experts can keep you exploring wearable tech solutions safely.