How to Create a Reasonable Alternative Standard
As the plan sponsor, you can create a reasonable alternative standard one of two ways: lower the usual health-factor related standard or substitute a different standard. You could also choose to waive the standard. Here are some examples.
Lowering the Standard
Let’s say the employee has a bad back and objects that walking three times a week for 30 minutes is too much. Instead of going for a doctor’s statement, the standard could be lowered to walking three times a week for 15 minutes.
Substituting a Different Standard (called Individual Accommodation)
Again, using walking as an example, employees who claim walking is medically inadvisable could have the alternative of weight-lifting or other exercise for 30 minutes three times a week.
Waiving the Standard
If you know you have employees who can’t meet the walking standard, you could choose to waive the standard completely and allow those employees to qualify for the reward. Be very cautious, however in using this approach since if you get a slacker in the crowd, you might have trouble. The best way to go if using waiver of the standard is to require a doctor’s statement. Even employees with physical disabilities are likely to get a physician recommendation for an alternative goal, and that is better than being rewarded for doing nothing. This also protects the plan from discrimination, i.e. waivers granted for the busy traveling salespeople but not for anyone else.