Health Insurance Costs Versus Privacy

  • Computers by Design (CBD) is a small computer systems sales and service business located in the Midwest. The owners of CBD, Abigail, Megan, and Andy, are concerned about rising health care insurance costs. Abigail has researched the issue, and has learned that CBD can better control insurance costs by only hiring people who are less likely to make claims—the healthy, the fit, and the nonaddicted. She has proposed to the other owners a two-step program.
  • First, CBD would conduct preemployment health screenings, including voluntary genetic testing. It would not hire anyone who smokes or uses drugs, has any genetically linked propensity for an expensive disease, or is not physically fit.
  • The second step would be to give every employee a 12-month notice to stop using tobacco and nonprescription drugs and to submit to random, monthly testing. Employees would also be placed on a fitness and weight control plan. Professional assistance would be available at no cost to help them stop using tobacco and drugs and to help them meet weight and fitness targets. Employees who meet the goals would be allowed to stay with CBD. Those who refuse would be given a severance package and discharged.
  • What are the legal issues involved here? Which of the measures proposed by Abigail are legal, and which are not? Explain the legal issues involved and reference specific pages from your readings to support your conclusions.
  • To what extent is an industry you are familiar with unionized and engaged in collective bargaining? Is the industry comprised of nonunion employees, unionized and nonunionized employees, or unionized employees? Explain why the industry does or does not have collective bargaining, and discuss what trends might tend to change the current situation in the near future. Be sure to incorporate both legal principles and relevant labor economics facts in your response. Provide references as appropriate.
  • Select one of the three areas of employment law to answer the question that follows:
    • Occupational Safety and Health
    • Employee Retirement Income Security Act
    • Fair Labor Standards Act

Considering one of the aforementioned entities, what are the differing responsibilities of the finance managers, first-line managers, and human resource managers with

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