Tobacco surcharge class actions target how employers offer the reasonable alternative.
A wave of class actions challenges premium surcharges on tobacco users.
What plaintiffs argue.
Reasonable Alternative
Plaintiffs say the alternative standard was not properly offered.
Notice
Some say employees were not told about the alternative.
Refunds
They seek refunds of the surcharge.
The results so far.
Williams v. Target
Dismissed July 22, 2026.
Spencer v. Campbell Soup
Dismissed July 22, 2026.
Different Facts
Results can differ by plan.
Keep Notices Clear
Describe the alternative plainly.
Quick answers.
Short answers. This is general information, not legal or tax advice.
Should we drop the surcharge?
That is a decision for you and your counsel.
What is a reasonable alternative?
A way for tobacco users to qualify for the lower premium.
Can you help?
We can help you review the notices.
Where the rules and figures come from.
Each figure on this page comes from the source below. Amounts are indexed or updated over time, so confirm current figures before relying on them.
Holland & Knight on Tobacco Surcharge Rulings
Williams v. Target and Spencer v. Campbell Soup, July 22, 2026.
KFF on Kennedy v. Braidwood
The Supreme Court upheld ACA preventive services, with open questions.
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