Tobacco Surcharge Wage Deduction Investigation

Does your employer deduct additional health insurance premiums, fees or surcharges for tobacco use? If so, you may be entitled to reimbursement of the overcharges.

Stueve Siegel Hanson LLP, a national leader in wage and hour and employee rights litigation, is investigating potential claims against employers who impose unlawful penalties for tobacco use. 
If you would like to learn more, please complete the contact form or call 866.714.0880.

Employees deserve better. Our law firm is holding employers accountable. 

Tobacco Surcharges: What You Need To Know

Employers and health insurers may charge additional premiums for tobacco use, but only if they meet certain requirements. One requirement is that the employer must provide a “reasonable alternative standard” to simply not being a tobacco user that offers the “full reward” of the wellness program.

In other words, employers and health insurers must give tobacco users a way to avoid the tobacco surcharge other than not smoking. And they must provide “notice” of the reasonable alternative standard in all plan documents discussing the extra tobacco surcharge. 

An example of a reasonable alternative standard would be a company sponsored tobacco cessation program for tobacco users to complete to avoid the surcharge (even if the program does not result in the employee ceasing tobacco use).


Stueve Siegel Hanson LLP, a leading law firm nationally ranked for plaintiff mass tort and class action litigation by U.S. News & World Report, advocates for workers' rights in high-profile wage and hour litigation throughout the country. 

Our experienced attorneys use knowledge gained at top law schools, federal clerkships and national law firms to give clients an advantage in court. We have successfully represented (and continue to represent) employees in wage and hour disputes against many Fortune 500 companies, national conglomerates, and all of the largest casino operators in the country, including Penn National Gaming, Caesars Entertainment, Pinnacle Entertainment, Boyd Gaming and Tropicana Entertainment. 

Our firm has secured more than $300 million in wages and penalties for our clients through class and collective actions. Because we work on a contingency fee basis, where we are paid based on the results we achieve for our clients rather than time spent on a case, we can represent all qualified individuals, regardless of their ability to pay. There are no upfront fees, retainers or unpredictable hourly billing.

This results-based fee structure means our trial lawyers have the same interests you do. Succeed for you and we succeed ourselves.

If you have questions about your employer’s tobacco surcharge, please contact us by filling out the form or calling 866.714.0880.

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