Novel Health Plan Surcharge Suit Tests Covid Vaccine Policies

A seemingly novel lawsuit over a company’s insurance surcharge for workers who refuse the Covid-19 vaccine shows the potential legal risks that come with attaching financial consequences to employee health choices.

Two security guards filed a proposed class action against GardaWorld Cash Services Inc. in a North Carolina federal court on Sept. 16, arguing the surcharge violates the Employee Retirement Income Security Act’s discrimination provisions. GardaWorld’s unusual policy is grounded in longstanding federal regulations governing workplace wellness programs, though other companies largely abandoned vaccine incentives and mandates after the pandemic’s peak.

A lot of companies implemented similar incentives during the ...