Employers Responsible for Pre-Employment Medical Exam Bills

Many different laws apply to this question, and they broadly prohibit employers from requiring any payments from an applicant (or employee) as a condition to his/her obtaining or continuing employment.

Indeed, employers cannot require that prospective employees pay for any type of medical examination or physical examination. Nor can this payment be made as a withholding from future paychecks.

Drug Testing
Pre-employment drug testing is something that employers are doing more and more. It is not regarded under the Americans with Disabilities Act as a medical examination, so it may be done at any point of the selection process, but due to cost issues, most companies restrict such testing to post-offer/pre-employment situations.

Cost is understandably a concern, but in addition to the state laws prohibiting passing on the cost to the applicant, requiring an applicant to pay for a pre-employment drug test might have the effect of discouraging some applicants, or else effectively result in less than minimum wage for the employee’s first paycheck.

Labor Code Violation
The California Labor Commissioner has addressed cases where an employer charged prospective applicants a fee to attend and perform at a “workshop” to apply for a job. That process was rejected by the Labor Commissioner as violating Labor Code Section 450, which states: “No employer…may compel or coerce any employee, or applicant for employment, to patronize his or her employer, or any other person, in the purchase of anything of value.”

Confidentiality
All medical tests should be considered absolutely confidential. They must be kept in a separate, confidential medical file. Any negligent release of test results could result in legal action—with potential claims for invasion of privacy as well as violation of other state and federal laws.

The Labor Law Helpline is a service to California Chamber of Commerce preferred and executive members. For expert explanations of labor laws and Cal/OSHA regulations, not legal counsel for specific situations, call (800) 348-2262 or submit your question at www.hrcalifornia.com.

Where Can You Get More Information?
Check out the Compliance Section of the Chamber Store. The Chamber is where you can get the HR Handbook for California and the California Labor Digest at the LOWEST price! Napa Chamber members are able to receive all of their required products at greatly reduced rates. Contact Lynn Page at (707) 254-1145 or click here to visit our online Chamber Store.