Sodexo Argues for Arbitration in 9th Cir. Smoker Surcharge Suit

A challenge to Sodexo SA’s practice of charging employees who smoke more money for health-care coverage should have been sent to arbitration, the food services company told the Ninth Circuit in a new brief.

The district court that ruled against Sodexo incorrectly invalidated the arbitration provision in the company’s health plan because it wasn’t agreed to by all the plan’s participants, Sodexo told the US Court of Appeals for the Ninth Circuit in a brief filed Thursday.

This decision is contrary to federal employee benefits and arbitration statutes because it improperly requires plan administrators to obtain consent from all participants ...