Whole Foods Market Inc. is facing a proposed class-action lawsuit filed last week alleging the retailer unlawfully imposes a tobacco-use surcharge of about $780 per year on employees’ health insurance premiums without providing a compliant alternative to avoid or recover the fee, according to HR Dive. The suit, brought by three current and former workers, claims that while employees can enroll in a tobacco cessation program, the surcharge is only removed prospectively and cannot be recouped retroactively, falling short of federal requirements outlined in the Employee Retirement Income Security Act (ERISA). The case comes amid a broader wave of ERISA lawsuits challenging employer tobacco surcharge programs, with plaintiffs arguing such policies unfairly raise costs for tobacco users without reasonable alternatives, potentially breaching fiduciary duties under ERISA and related federal laws.
