Sysco Health Plan’s Tobacco Penalty Draws Proposed Class Action

Sysco Corp. was sued by current and former employees who accuse the food distributor of wrongly charging workers who smoke extra fees for health-care coverage without providing a valid method for waiving the penalties.

The proposed class action, filed Jan. 30 in the US District Court for the Southern District of Texas, challenges Sysco’s practice of imposing a biweekly penalty of about $23 on tobacco-using employees covered by its health plan. Sysco reimburses the penalties for certain employees who complete a quit-smoking program, but it doesn’t properly explain this program or ensure that workers receive full reimbursement as required ...