First, when seeking any type of health information upon which any decision would be based, you need to be cautious of the Americans with Disabilities Act which prohibits you from denying participation based on any qualified disability, UNLESS you can show that there is a legitimate safety reason as to why they cannot participate.
Second, under HIPAA, the law applies to covered entities. A covered entity under HIPAA is a "healthcare provider" or "healthcare insurer" and that is it. Thus, HIPPA does not apply to employers or other non healthcare entities. However, any agency or employer collecting such medical information has a duty of confidentiality/privacy to not disclose such information EXCEPT to those within the agency who have a "legitimate business
reason" to know the information. Additionally, this medical information should be kept in secure files away from other information as part of the general protection of privacy/confidentiality of the information. Failure of an agency to have privacy protections in place is what would be grounds for suit. However, sharing information with those who have a legitimate need for the information would not violate any laws.
To cover your agency, your forms should have a disclaimer
on there stating that all information on those forms may be shared with other employees or members of the organization for legitimate business reasons.
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