Walmart Workers Sue Over Health Plan Tobacco Surcharges

Sep 17, 2024 | News

Walmart Inc. is facing a proposed class action lawsuit filed in Wisconsin federal court by employees Annette M. Cunningham and Samantha M. Dennis. The lawsuit alleges that Walmart’s tobacco surcharge for health insurance violates the Employee Retirement Income Security Act (ERISA) by discriminating against workers based on their health status. The plaintiffs claim they paid about $96 monthly ($1,150 annually) in surcharges. They argue that Walmart’s wellness program doesn’t offer a compliant alternative to the surcharge or adequately inform workers about such options, violating ERISA’s anti-discrimination provisions.

The proposed class would include thousands of U.S. workers who paid tobacco surcharges for Walmart health or welfare plans in the past six years. The lawsuit contends that Walmart’s current cessation program doesn’t provide full reimbursement or immediate rate changes for those who quit mid-year, failing to meet legal requirements. Siri & Glimstad LLP is representing the plaintiffs, with attorneys Oren Faircloth and David J. DiSabato named as counsel. Faircloth commented that the surcharges violate federal law prohibiting ‘lifestyle choice’ discrimination unless strict regulatory compliance is maintained.

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