Health Update: Smoker Class Actions Put Pressure on Employer Wellness Programs – What Experts Say

Employee benefits attorneys are monitoring a string of class actions over health insurance smoking surcharges with the potential to reshape how employers impose penalties in wellness programs.

At least half a dozen federal lawsuits are ongoing, with workers alleging employers are violating fiduciary duties and nondiscrimination provisions under the Affordable Care Act and Employee Retirement Income Security Act by penalizing smokers and pocketing the fines. Multiple corporations have settled cases with workers in recent months, with Performance Food Group Inc. most recently agreeing to pay $4.7 million to 18,500 employees.

Recent district court developments raise questions around how much time …