Pest Control Firm Can’t Squash Health Plan Smoker Penalty Suit

Pest control company Rentokil NA Inc. failed to escape a proposed class action challenging its practice of charging higher fees for health-care coverage to employees who use tobacco products.

The plaintiffs, current and former Rentokil workers, validly alleged that the company flouted the legal requirements governing employee wellness plans by charging a tobacco penalty without providing a valid alternative standard that would allow them to avoid the charges without quitting smoking, Judge Jeffrey L. Schmehl said Wednesday. Federal law requires that employees who complete an alternative standard—typically a quit-smoking program—must receive the “full reward” under their plan, and employees who ...