UGN Sued by Former Worker Over Health Plan Penalty for Smokers

UGN Inc. was sued Friday by a former employee who says the automobile part maker wrongly charges workers who smoke a $1,152 annual penalty for health coverage without providing a valid way to avoid the fee.

UGN’s tobacco surcharge violates federal law because it doesn’t allow workers to have these fees retroactively refunded after attending a smoking cessation program, the worker said in a proposed class complaint filed in the US District Court for the Northern District of Illinois. UGN also fails to properly inform workers of their ability avoid the penalty by participating in such a program, according to ...