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Tag: tobacco surcharge

  • Marriott’s Tobacco Health Fee Lawsuit Narrowed

    Marriott’s Tobacco Health Fee Lawsuit Narrowed

    A Maryland federal judge allowed a proposed class action challenging Marriott International’s tobacco-user health surcharge to proceed, while dismissing several claims the court found insufficiently supported. The case was brought by Marriott employee William McNeil, who alleges the company violated the Employee Retirement Income Security Act (ERISA) by charging employees who use tobacco an additional $15 per week for health coverage without providing an adequate alternative way to avoid the surcharge. The lawsuit was filed in September 2025 in the U.S. District Court for the District of Maryland.

    McNeil alleges Marriott’s employee communications referenced a smoking-cessation program but did not provide sufficient information about how employees could enroll or whether participation would allow them to avoid the fee. Marriott moved to dismiss the amended complaint in January, arguing the claims failed as a matter of law; McNeil opposed the motion in February, and Marriott filed its reply in March.

    The lawsuit is proceeding under ERISA and remains before U.S. District Judge Theodore Chuang in Maryland.

  • Whole Foods Faces Class-Action for Surcharge on Tobacco-Using Employees

    Whole Foods Faces Class-Action for Surcharge on Tobacco-Using Employees

    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.