Council votes 4–1 to increase employee wellness penalty to $50 per paycheck beginning FY 2026–27

The Freeport City Council on Sept. 2 approved a revision to the city policy handbook requiring employees who do not complete an annual wellness exam to pay a higher per-paycheck fee in the following fiscal year.

At the request of council at an earlier meeting, staff brought forward a change to the wellness requirement. The policy originally required a $25 per-paycheck charge for employees who did not obtain the annual wellness exam; the amendment increases that amount to $50 per paycheck beginning in fiscal year 2026–27. Staff said the $25 per-paycheck penalty that was previously approved will take effect Oct. 1 for employees who have not completed the wellness requirement for the current year, but the $50 figure applies in the subsequent fiscal year.

Councilman Matamoros moved to approve the revision; Councilman Raso seconded. The motion carried 4–1. One council member said $50 was a substantial amount and preferred keeping the $25 level; the majority supported increasing the penalty for the next fiscal year as an incentive to complete preventive care.

Why it matters: City staff said the wellness-policy provisions aim to contain health-insurance costs through preventive care. The change affects employees who choose not to complete the required wellness exam and shifts more of the premium burden to those employees in the following fiscal year.

Implementation: Staff said the $25-per-paycheck charge will apply to employees who have not completed the wellness exam as of Oct. 1; the $50 penalty is scheduled for payroll in fiscal year 2026–27 for those who again do not comply.