Health Workers Hit With Tobacco-Use Plan Charges, Suits Say (1)

March 31, 2026, 9:48 PM UTCUpdated: March 31, 2026, 10:56 PM UTC

A New Jersey-based health provider is being sued over its practice of charging tobacco-using workers an extra $100 a month for health-care coverage.

RWJBarnabas Health takes the fee out of tobacco-users paychecks but doesn’t provide employees a reasonable alternative to waive that fee in violation of the Employee Retirement Income Security Act, according to a Tuesday complaint filed to the US District Court for the District of New Jersey.

“Tobacco surcharges have become more prevalent in recent years but to be lawful plans must make available a compliant ‘wellness program’ that provides ...

Learn more about Bloomberg Law or Log In to keep reading:

See Breaking News in Context

Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.

Already a subscriber?

Log in to keep reading or access research tools and resources.