Key points:
- A former employee has filed a proposed class-action lawsuit against Marten Transport Ltd., alleging that the company’s health plan unlawfully charges smokers an additional $780 annually.
- The lawsuit claims the surcharge violates the Employee Retirement Income Security Act (ERISA) by not providing a compliant alternative to avoid the penalty.
- This case is part of a broader trend of legal challenges against employer-imposed tobacco surcharges in health plans.
Marten Transport Ltd., a Wisconsin-based trucking company, is facing a proposed class-action lawsuit filed in federal court by former employee. The lawsuit alleges that the company’s health plan imposes an unlawful tobacco surcharge, requiring employees who smoke to pay an extra $780 per year for their health coverage.
The plaintiff, Mark Maurer, contends that the practice violates the Employee Retirement Income Security Act (ERISA), which prohibits discrimination based on health status.
According to the complaint, while Marten Transport allows employees to avoid future surcharges by participating in smoking cessation programs, it does not offer a way to recoup penalties already paid.
ERISA regulations mandate that health plans must provide a “reasonable alternative standard” for employees to avoid such surcharges, and the lawsuit argues that Marten’s policy falls short of this requirement.
The legal action reflects a growing scrutiny of employer-imposed tobacco surcharges in health plans. Recent months have seen a surge in similar lawsuits against major U.S. companies, including allegations that such surcharges violate federal compliance requirements.
