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Health

Employer FAQs on the Rise of GLP-1 Drugs for Weight Loss and the Workplace Impact

by Chief Editor
written by Chief Editor

The Shifting Landscape of GLP-1 Coverage: What Employers Need to Know

The rise of GLP-1 receptor agonists – medications like Ozempic, Wegovy, Mounjaro, and Zepbound – has dramatically altered the conversation around weight management and chronic disease. Initially used for Type 2 diabetes, these drugs have gained popularity for weight loss, creating a ripple effect through employer-sponsored health plans. But what does the future hold for GLP-1 coverage, and how are employers navigating this complex terrain?

The Current State of Play: Coverage Trends

Currently, around 20% of large employers (those with 200+ employees) cover GLP-1 drugs primarily for weight loss. However, this figure jumps to 43% among employers with 5,000 or more employees, representing a significant increase from the previous year. Despite this growth, the trend appears to be plateauing. A majority of employers who don’t currently offer this coverage are unlikely to do so in the next 12 months, with only 1% indicating a high likelihood of adding it.

Many employers are grappling with the high cost of these medications. A substantial 66% of the largest employers report that covering GLP-1s for weight loss has had a “significant” impact on their prescription drug spending. Some employers are even revisiting coverage decisions, tightening restrictions, or halting coverage altogether.

FDA Approvals and Off-Label Use

It’s crucial to understand that not all GLP-1 drugs are FDA-approved for weight loss. As of now, Wegovy and Zepbound are approved for chronic weight management in adults with obesity or who are overweight with weight-related conditions. Wegovy similarly has approval to reduce the risk of cardiovascular events in those with obesity and heart disease, and Zepbound is approved for treating obstructive sleep apnea in obese adults. Ozempic and Mounjaro, even as widely prescribed, currently lack FDA approval for weight loss, though clinicians may prescribe them “off-label.”

Navigating Legal Considerations: Discrimination and Indication-Based Coverage

Employers considering GLP-1 coverage must tread carefully regarding potential legal challenges. Indication-based coverage – covering the drugs for diabetes but not obesity – could raise concerns under the Americans with Disabilities Act (ADA), the Affordable Care Act (ACA), and other laws. While federal law doesn’t explicitly prohibit weight-based discrimination, the legal landscape is evolving, with some state and local laws offering weight as a protected class. Recent court decisions regarding obesity and disability have been mixed, and the EEOC has pursued cases on behalf of morbidly obese employees.

Several lawsuits have been filed against health insurers challenging obesity exclusions for GLP-1 medications, though these haven’t directly targeted employers yet. Employers should consult with legal counsel to ensure compliance and mitigate risk.

Alternative Approaches to Supporting Employee Wellness

For employers hesitant to fully cover GLP-1s for weight loss, alternative strategies exist. Offering consumer-driven health plans (CDHPs) coupled with health savings accounts (HSAs) or flexible spending accounts (FSAs) allows employees to use pre-tax dollars for eligible prescription medications. Employer contributions to these accounts can further support employees seeking weight loss solutions. Clear communication regarding eligibility and documentation requirements is essential.

State-Level Mandates: A Growing Trend?

North Dakota is currently the only state to mandate GLP-1 coverage. Beginning in 2025, the state requires its ACA-compliant individual and small group plans to cover these drugs for diabetes prevention, insulin resistance, metabolic syndrome, or morbid obesity. However, this mandate doesn’t apply to grandfathered plans or large group plans.

Whether other states will follow suit remains to be seen, but the trend suggests increasing pressure on employers to address the growing demand for these medications.

The Future of GLP-1 Coverage: What to Expect

The future of GLP-1 coverage is uncertain. While the initial surge in employer coverage may be slowing, the underlying demand for these medications isn’t diminishing. Employers will likely continue to explore strategies to balance cost containment with employee health needs. This could involve stricter utilization management, tiered formularies, and increased emphasis on preventative care and lifestyle interventions.

The development of oral GLP-1 medications could also influence coverage decisions, potentially making these drugs more accessible and affordable. Continued research into the long-term effects and broader applications of GLP-1s will further shape the conversation.

FAQ

Q: Are employers required to cover GLP-1 drugs for weight loss?
A: No, there is currently no federal mandate requiring employers to cover GLP-1 drugs for weight loss.

Q: Can employers offer different coverage based on the reason for prescribing a GLP-1 drug?
A: Yes, but indication-based coverage can raise legal concerns and should be carefully reviewed with legal counsel.

Q: What are some alternatives to covering GLP-1 drugs directly?
A: Employers can offer CDHPs with HSAs or FSAs, allowing employees to use pre-tax dollars for eligible medications.

Q: Is GLP-1 drug coverage likely to become more common in the future?
A: The trend appears to be plateauing, but demand remains high. Employers will likely continue to evaluate coverage options based on cost, legal considerations, and employee needs.

Did you know? Approximately 18% of adults in the US have used GLP-1 drugs for weight loss or to treat chronic conditions.

Pro Tip: Regularly review your health plan’s GLP-1 coverage policies with your legal counsel to ensure compliance with evolving regulations.

To learn more about navigating the complexities of employee benefits and healthcare compliance, contact Fisher Phillips’ Employee Benefits and Tax Practice Group.

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Tech

Google Engineer Who Stole AI Trade Secrets Gets Guilty Verdict: Lessons for Your Business

by Chief Editor
written by Chief Editor

The Rising Tide of AI Espionage: Protecting Trade Secrets in a New Era

The recent conviction of former Google engineer Linwei Ding for stealing AI trade secrets marks a pivotal moment, not just in legal precedent, but in the escalating battle to protect intellectual property in the age of artificial intelligence. This case, the first of its kind in the U.S., underscores a growing threat: the deliberate theft of AI technology by state-sponsored actors and competitors.

The Evolving Tactics of Data Theft

Ding’s method – utilizing Apple Notes and personal cloud storage to exfiltrate thousands of pages of confidential Google data – highlights a shift in tactics. Previously, data theft often involved physical documents or easily traceable network intrusions. Now, employees are leveraging everyday tools to bypass initial security measures. The Department of Justice noted Ding’s efforts to conceal his activities, including asking a colleague to swipe his employee badge, demonstrating a calculated approach to avoid detection.

Why AI is the Prime Target

Artificial intelligence is no longer a futuristic concept; it’s a core component of economic and national security. The ability to develop and deploy advanced AI capabilities provides a significant competitive advantage. As the race to dominate AI intensifies, the incentive to acquire proprietary technology through illicit means will only increase. Intelligence officials have consistently warned about increased efforts by foreign entities to exploit U.S. AI advancements.

Strengthening Internal Defenses: A Four-Pronged Approach

The Ding case also provides valuable lessons for businesses seeking to safeguard their intellectual property. While Google’s existing security measures were deemed “reasonable” by the court, the incident underscores the need for continuous improvement. Here’s a practical roadmap for employers:

  1. Intellectual Property Audit: Clearly identify and categorize confidential information, including algorithms, source code, and customer data. Prioritize protection based on sensitivity and restrict access accordingly.
  2. Digital and Physical Security: Implement multi-factor authentication, VPNs, and encrypted servers. Data Loss Prevention (DLP) tools are crucial for detecting unusual data transfers. Don’t overlook physical security measures like locked rooms and secure document destruction.
  3. Employee Awareness and Agreements: Ensure employees understand their obligations through comprehensive policies, NDAs, and regular training. Require certifications upon departure confirming the return of proprietary materials.
  4. Legal Counsel on Alert: Proactively engage legal counsel if a potential breach is suspected. Federal agencies are increasingly focused on investigating these crimes.

The Role of Legal Frameworks

The Defend Trade Secrets Act (DTSA) provides a legal framework for protecting trade secrets, but its effectiveness relies on companies taking proactive steps to define and safeguard their confidential information. Demonstrating “reasonable measures” to protect data is critical for successful prosecution under the DTSA.

Looking Ahead: Predictive Security and AI-Powered Defenses

The future of trade secret protection will likely involve more sophisticated, AI-powered security solutions. Predictive security analytics can identify anomalous employee behavior and potential data exfiltration attempts before they occur. Machine learning algorithms can also be used to detect and classify sensitive data, automating the process of identifying and protecting critical assets.

companies are exploring the use of blockchain technology to create immutable records of intellectual property ownership and access, enhancing transparency and accountability.

FAQ: Protecting Your Company’s AI Assets

Q: What constitutes a “trade secret”?
A: Information that derives independent economic value from not being generally known and is subject to reasonable efforts to maintain its secrecy.

Q: Are NDAs enough to protect my company?
A: NDAs are a good starting point, but they must be combined with robust security measures and employee training.

Q: What should I do if I suspect an employee is stealing trade secrets?
A: Immediately contact legal counsel and initiate an internal investigation.

Q: How can DLP tools help prevent data theft?
A: DLP tools monitor network activity and can block or alert administrators to suspicious data transfers, such as large downloads or emails containing sensitive information.

Did you know? The conviction of Linwei Ding is the first of its kind related to AI-specific economic espionage in the United States.

Pro Tip: Regularly review and update your company’s security policies to address evolving threats and technologies.

This is a rapidly evolving landscape. Staying informed and proactive is essential for protecting your company’s most valuable assets.

Explore our Privacy and Cyber Practice Group for more information.

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Health

The Expanded New York Healthy Terminals Act Is Here: What Employers Must Know About the New Rules and Latest Guidance

by Chief Editor
written by Chief Editor

New York’s Healthy Terminals Act: A Glimpse into the Future of Airport Worker Protections

The recent expansion of New York’s Healthy Terminals Act (HTA) isn’t just a regional update; it’s a bellwether for a growing national trend: increased worker protections, particularly for those in traditionally undervalued service roles. As of January 1, 2026, the changes to the HTA – covering wage standards, benefits, and paid leave at LaGuardia and JFK airports – signal a potential shift in how we value labor within the transportation sector and beyond.

The Rising Tide of Airport Worker Advocacy

For years, airport workers – from baggage handlers and cabin cleaners to food service staff – have often faced precarious employment conditions, low wages, and limited benefits. The HTA, and similar legislation gaining traction in other cities, represents a direct response to these concerns. A 2023 report by the Economic Policy Institute found that service workers in the transportation sector earn, on average, 23% less than workers in other industries with similar skill levels. This disparity is fueling the demand for stronger protections.

Beyond Minimums: The Evolution of Benefit Standards

The HTA’s requirement for a minimum supplemental contribution to health care or supplemental wages – currently $5.55 per hour – is particularly noteworthy. This isn’t simply about hitting a wage floor; it’s about ensuring access to essential benefits. We’re likely to see other jurisdictions follow suit, moving beyond basic minimum wage laws to mandate contributions towards healthcare, retirement plans, or other forms of financial security. California’s recent expansion of paid family leave is a prime example of this broader trend.

Pro Tip: Employers should proactively benchmark their current benefits packages against the HTA standards and anticipate potential increases in labor costs. Waiting until the last minute can lead to compliance headaches and potential penalties.

The Paid Leave Revolution: A National Conversation

The HTA’s paid leave requirements – 12 paid holidays and vacation time based on tenure – align with a growing national conversation around the importance of work-life balance and employee well-being. States like Washington and Massachusetts have already implemented comprehensive paid family and medical leave programs. The HTA demonstrates a willingness to extend these protections to a specific, often overlooked, segment of the workforce. Expect to see more targeted paid leave legislation focusing on specific industries or worker classifications.

The Impact of the McNamara-O’Hara Service Contract Act (SCA)

The HTA’s reliance on the SCA wage determinations is a crucial element. The SCA, originally designed to protect workers on federal contracts, is increasingly being used as a baseline for establishing fair wages in other sectors. This highlights the growing influence of federal labor standards on state and local policies. Regular monitoring of SCA updates is now essential for employers operating in areas with similar legislation.

Compliance Challenges and the Role of Technology

Navigating the complexities of the HTA – and similar laws – presents significant compliance challenges for employers. Accurately tracking employee time, calculating wage rates, and managing benefit contributions requires robust systems and processes. We’re seeing a surge in demand for HR technology solutions that automate these tasks and ensure compliance. Companies that invest in these tools will be better positioned to adapt to evolving labor regulations.

The Future of Worker Classification: Independent Contractors vs. Employees

As worker protections increase, the debate over worker classification – whether someone is an employee or an independent contractor – will intensify. Employers may be tempted to misclassify workers to avoid the costs associated with compliance. However, this practice is increasingly risky, as regulators are cracking down on misclassification schemes. The HTA’s broad coverage – applying to all employers with covered workers, regardless of size – underscores the importance of accurate classification.

FAQ: New York Healthy Terminals Act

  • Q: Who is considered a “covered worker” under the HTA?
    A: Any worker who spends at least 50% of their time during a workweek at LaGuardia or JFK airports, or at locations preparing/delivering food for those airports.
  • Q: Do all employers need to meet the wage and benefit standards?
    A: No, only employers with 11 or more employees are subject to the wage and benefit rate standards. However, *all* employers with covered workers must comply with the paid leave requirements.
  • Q: What if my company already offers health benefits?
    A: You can choose to either pay the supplemental wage rate or contribute the equivalent amount to an employer-sponsored health care plan.
  • Q: Where can I find the required HTA poster?
    A: The poster (LS208) is available in 17 languages at https://dol.ny.gov/LS208-doc.
Did you know? The Port Authority of New York and New Jersey’s minimum wage is currently $21.25, which may exceed the SCA wage determination in some cases. Employers must pay the *greater* of the two rates.

Staying ahead of these changes requires a proactive approach. Employers should consult with legal counsel, review their policies and practices, and invest in the tools and resources necessary to ensure compliance. The HTA is not an isolated event; it’s a sign of things to come.

Resources:

What steps is your organization taking to prepare for the evolving landscape of airport worker protections? Share your thoughts in the comments below!

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