Class Action Alleges Campbell Soup Co. Discriminates Against Smokers with Higher Health Insurance Costs
Employees of Campbell Soup Co. are taking legal action against the company, claiming they are unfairly charged higher health insurance premiums for being smokers. The lawsuit, filed in a New Jersey federal district court, alleges that these premium increases violate ERISA regulations.
Under ERISA, tobacco surcharges are allowed only if they are part of a wellness program that meets specific criteria. This program must aim to improve health and offer smokers an alternative way to avoid the surcharge, such as participating in a smoking cessation program. Employers are required to clearly communicate the terms of the wellness program to employees and inform them of their options to meet the alternative standard.
The employees argue that Campbell Soup did not provide an alternative standard in its program as mandated by ERISA. Even if they did, the employees claim that the company failed to inform them about it. Additionally, the employees assert that Campbell Soup did not inform them that the program would accommodate recommendations from their physicians.
Campbell Soup charges smokers an additional $12.50 per week or $650 per year for health insurance premiums, regardless of the type of tobacco used. The company also imposes higher premiums for voluntary life and disability insurance for tobacco users.
While Campbell Soup offers a “Quit for Life” tobacco cessation program, the employees argue that it does not meet ERISA requirements for an alternative standard. They highlight that the program only applies going forward; meaning smokers must complete it to stop the surcharges without any mechanism to reimburse retroactively. ERISA requires full rewards for completing alternative standards, including retroactive removal of surcharges.
This legal challenge against Campbell Soup is not unique. Other companies like PepsiCo, Target, 7-Eleven, Walmart, Compass Group USA, Bass Pro Group, and Tractor Supply are facing similar lawsuits in federal district courts across the country.
It’s important to note that the information in this article offers a general overview of the issue. It’s advisable to seek expert advice tailored to your specific circumstances.
