Accessibility Tools

Skip to main content

Dangers of Additional Surcharges to Employees with Bad Health Habits

Written on .

The Employee Retirement Income Security Act (ERISA), has anti-discrimination provisions which require healthcare plans with surcharges for poor health practices to provide a reasonable alternative standard to such surcharges.

Lately there has been a slew of litigation pertaining to tobacco surcharges by health plans, more than a dozen recent lawsuits.  A recent lawsuit at Bass Pro Group alleged the company's health plan violated this law which requires plans with tobacco surcharges to provide a reasonable alternative standard like participation in a smoking cessation program, in lieu of surcharges.  Plaintiffs contended the tobacco cessation program used by the employer went too far because workers could not avoid the penalty by completing the program, but instead had to remain tobacco-free for a period of time.  The employer settled the class action with tobacco-using workers for approximately $5 million.  

This article is part of our February 2025 Newsletter. 

View newsletter online

Download the newsletter as a PDF

Related Content

Get Email Updates

Receive newsletters and alerts directly in your email inbox. Sign up below.
clouds, birds migrating
In a recent survey, 55% of responding employers ranked the scrutiny of Diversity, Equity and Inclusion (DEI) programs as a top issue, while…
arrest
The New York Times reported on Thursday, June 12, 2025, that a senior official with Immigration and Customs Enforcement (ICE) directed inve…
life in Cuba
The federal government recently announced its position on the termination of work authorization for people who have parole status under one…
map of venezuela
The U.S. Citizenship and Immigration Services (USCIS) updated its website to remove work authorization for most TPS Venezuela workers with…
man holding a chain link fence, outdoors
On June 6, Jim Wimberly, Jim Hughes, and Betsy Dorminey presented a webinar addressing the current status of diversity, equity, and inclusi…
costly mistakes webinar promo
We will review the common mistakes that employers make that increase the length of time and cost of claims. In particular, we will review t…