Employer Liability for Sponsored Exercise Programs

Health and wellness programs are tools used by employers and employees to manage the increasing cost of health coverage. Both groups realize that being well and staying healthy may be the best insurance against premium increases.

The spectrum of wellness initiatives can run the gamut from an annual health fair to full blown exercise and fitness centers. Employers often ask whether an employee injured while participating in an exercise activity during the work day is eligible for workers’ compensation benefits.

The Workers’ Compensation Act excludes injuries that occur during recreational activities that are employer sponsored when the following two factors are present:

• The activity or program is sponsored by the employer and not just a random activity that an employee undertakes on his or her lunch break.
• The activity is completely voluntary on the part of the employee. Minnesota Statutes, Section 176.021, Subdivision 9 provides that “injuries incurred while participating in voluntary recreational programs sponsored by the employer, including health promotion programs, athletic events, parties, and picnics, do not arise out of and in the course of the employment even though the employer pays some or all of the cost of the program. This exclusion does not apply in the event that the injured employee was ordered or assigned by the employer to participate in the program.”

Adopt a Policy for Sponsored Activities

To protect the organization best, an employer-sponsored activity or program should be officially sponsored by the board or a committee that has been delegated authority to act on behalf of the employer. MCIT suggests that the employer adopt a policy that identifies the types of activities it will sponsor or a process for an activity or program to become sanctioned.

For instance, the policy could require that all recreational activities held on the employer’s premises must be approved by [the board or committee] subject to completion of an application.

The adoption of a policy is an affirmative act by the employer, which together with the application, is evidence of the employer’s sponsorship of the program.

Other issues to consider for inclusion in a policy are:

• Location, where will the activity take place on the employer’s premises?
• Time, will it take place during a compensated or uncompensated time of the day?
• Other policies, is the activity governed by any other employer policy?
• Regular or special event, is it a regular/customary event of which the employer is aware, such as a football game that takes place between departments at lunch time each day?

By adopting a written policy, the employer is tasked with ascertaining what is presently occurring and determining what may be worthy of integration into a wellness program.

Ensure Exclusion Applies

To ensure that statutory exclusion for workers’ compensation benefits will apply, employees must be made aware that:

1. Their participation is clearly voluntary (employers cannot make participation a condition of employment; and
2. The activity is sponsored by the employer.

To accomplish this, MCIT recommends that employees sign a notice acknowledging the activity is voluntary and not part of their job duties.

For example, employees participating in an exercise program during their lunch break would sign the following:

[Name of employee] understands and agrees that the exercise program taking place over the lunch hour on the employer’s premises is a voluntary recreational program. The employee understands he or she is not required to participate in the program and understands that any injury occurring during the recreational (exercise) activity will not be covered by the employer’s workers’ compensation coverage. Employee has no medical condition that precludes participation in this recreational program.

[Signature of employee]

If you have any questions regarding this release or the terms of this release please contact

[Name of employer representative] immediately and do not participate in any recreational (exercise) activities sponsored by the employer.

This language, or similar language, immediately informs employees that an injury that occurs while the employee is participating in the exercise program will not be covered under workers’ compensation. The notices should be kept in the employee’s personnel file or may be maintained by the health and wellness coordinator.

The notice is an important piece of evidence in the event an employee is injured while participating in an activity and files a workers’ compensation claim. To fall within the exception to the statute, the activity must truly be voluntary.

Members who have questions or would like further information about this topic should contact MCIT at 1.866.547.6516.