Waffle House is accused of discrimination against employees who smoke in a $5M lawsuit.

Waffle House Faces Lawsuit Over Health Insurance Charges

A former employee has filed a class action lawsuit against Waffle House, claiming the company illegally imposed an extra $92 monthly charge on workers who use tobacco. The lawsuit seeks more than $5 million in damages.

According to the complaint submitted to the U.S. District Court for the Middle District of Georgia, Waffle House allegedly breached the Employee Retirement Income Security Act by imposing a tobacco premium without allowing employees to avoid the fee through participation in a smoking cessation program.

Kokisa Hicks, who worked as a server in a Waffle House in Forsyth, Georgia, states that she paid this additional charge after signing up for the company’s health insurance in June 2023. The lawsuit notes that these deductions amount to about $23 weekly, which totals $92 monthly, adding up to around $1,104 per year.

This lawsuit is directed at Waffle House employees nationwide who have incurred these cigarette premiums over the last six years. The company operates more than 2,000 restaurants across 25 states and requires staff enrolled in its health insurance to declare if they use tobacco.

The complaint asserts that those who admit to using tobacco are subjected to this extra charge to maintain their health insurance. Hicks contends that this practice violates federal welfare laws, indicating that employers can only impose charges on smokers if they offer a legitimate health program that allows workers a meaningful way to avoid the fee.

Waffle House provides a smoking cessation program called Quit for Life. Employees who complete the program by September 30 will get refunded for their tobacco surcharges for the current plan year and will not have to continue paying these fees in the future. However, the lawsuit claims that those who withdraw from the program after the deadline won’t receive reimbursement for previous payments.

Hicks also argues that Waffle House fails to adequately inform employees in its health insurance materials regarding the possibility of avoiding extra fees by participating in the program.

Furthermore, the complaint alleges that funds collected through cigarette surcharges were not properly allocated to employee health insurance but rather mishandled. In summary, it describes Waffle House’s health program as an unreasonable scheme meant to generate revenue under the guise of a health initiative.