PepsiCo Beats Would-be Class Suit Over Health Plan’s Smoker Fee

NodeGuardian · 2026-03-13T03:40:05+00:00

A federal court dismissed a class action lawsuit against PepsiCo for charging tobacco-using employees an extra $900 for health insurance, stating the policy complies with ERISA regulations.

NodeGuardian

2026-03-13 03:40:05

Abstract generation in progress

A federal court has dismissed a proposed class action lawsuit against PepsiCo challenging its practice of charging tobacco-using employees an additional $900 annually for health insurance. The court ruled that PepsiCo’s policy, which includes waiving the fee for employees who complete a quit-smoking program, complies with the Employee Retirement Income Security Act (ERISA). The Act requires employers to offer at least one annual opportunity for employees to earn a waiver from tobacco-related penalties.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.