Rentokil Sued Over Tobacco Penalty in Employee Health-Care Plan

Pest control company Rentokil NA Inc. wrongly charges employees who smoke more money for health-care coverage without giving them a chance to have the penalties waived, according to a newly filed lawsuit.

Rentokil requires tobacco-using employees on the company’s health plan to pay annual penalties ranging between $150 and $2,615 without giving them a valid opportunity to have the fees waived, a current and a former Rentokil employee said in a proposed class complaint. This is a “fundamental violation” of the federal regulations governing employee wellness programs, which allow tobacco penalties only when workers are given an alternative method ...