Bally’s Fends Off Challenge to Worker Health Plan Smoker Penalty

Bally’s Management Group LLC defeated litigation challenging its practice of charging tobacco-using workers an extra $780 per year for health coverage, scoring one of the first major employer victories in a new series of cases.

Bally’s isn’t legally required to retroactively reimburse the tobacco penalties paid by workers who later complete a quit-smoking program, Judge Mary S. McElroy said, dismissing a proposed class action against the gambling and entertainment company.

Federal law allows employer-sponsored health plans to charge workers who smoke a tobacco penalty, but the plan will violate the Employee Retirement Income Security Act’s anti-discrimination provision if those workers ...