Waffle House is facing a proposed class-action lawsuit claiming it illegally charged employees who use tobacco an additional $92 per month for health insurance. This lawsuit, which seeks over $5 million, was filed in the US District Court for the Middle District of Georgia.
Corkeitha Hicks, a former server at a Waffle House in Forsyth, Georgia, states in her complaint that she was charged this surcharge after enrolling in the company’s health plan. According to the lawsuit, Waffle House deducted approximately $23 weekly from her pay, summing to around $1,104 annually.
The lawsuit aims to include all Waffle House workers nationwide who have paid this surcharge in the past six years. Waffle House operates over 2,000 restaurants across 25 states and requires employees to disclose tobacco usage when enrolling in health insurance. Those who identify as tobacco users incur the extra $92 charge.
Hicks argues this surcharge infringes on the Employee Retirement Income Security Act (ERISA), which mandates that employers can only impose higher charges on smokers if they also provide a smoking-cessation program. Waffle House does offer a program called Quit for Life, allowing participants who complete it by September 30 to receive refunds.
However, the complaint asserts that those finishing the programme after this date are not reimbursed for previous surcharges. Hicks also alleges that the company did not adequately inform employees about the possibility of avoiding the fee by completing the cessation program.
The lawsuit claims that Waffle House misused the funds from these surcharges, presenting their wellness program as a profit-making scheme rather than a genuine health initiative. Waffle House has been contacted for a response to these allegations.
Test Your Understanding
How much do you know?
