JPMorgan class action alleges tobacco surcharges violate ERISA

JPMorgan class action overview:

• Who: Plaintiff Robyn D. Carmichael filed a class action lawsuit against JPMorgan Chase & Co.
• Why: Carmichael claims JPMorgan unlawfully imposed punitive health insurance surcharges on employees who use tobacco products.
• Where: The JPMorgan tobacco surcharge class action lawsuit was filed in New York federal court.

A new class action lawsuit accuses JPMorgan Chase & Co. of unlawfully imposing punitive health insurance surcharges on employees who use tobacco products.

Plaintiff Robyn D. Carmichael claims JPMorgan violated the Employee Retirement Income Security Act (ERISA) by unfairly targeting employees based on their health status, such as tobacco use.

Carmichael argues JPMorgan charged a “tobacco surcharge” that unjustly forced certain employees to pay higher premiums for their health and other insurances provided by the company.

The plaintiff claims tobacco surcharges have become more prevalent in recent years, but argues they must adhere to specific rules set forth by ERISA and related regulations to be lawful.

“While ERISA allows for wellness programs that incentivize healthy behavior, these programs must meet strict criteria,” the JPMorgan class action says.

JPMorgan failed to provide a reasonable alternative standard, class action alleges

Carmichael argues JPMorgan did not, for the entire year, offer a required reasonable alternative and failed to properly inform employees that such an option was available to help them avoid the tobacco surcharge. 

“Consequently, Defendant’s tobacco surcharge violates ERISA’s anti-discrimination provisions by imposing additional costs on employees who use tobacco products without meeting the legal requirements for a bona fide wellness program,” the JPMorgan class action says.

Carmichael wants to represent a nationwide class of individuals who paid a JPMorgan tobacco surcharge in connection with the company’s healthcare and insurance program for active employees at any time from six years prior to the filing of the complaint to the present.

The plaintiff demands a jury trial and requests declaratory and injunctive relief, reimbursement, disgorgement and an award of attorneys’ fees and costs.

In other legal action, JPMorgan Chase, along with six other major banks, is facing allegations it colluded to fix interest rates on consumer and small-business loans for more than 30 years.

What do you think of the allegations made in this JPMorgan class action lawsuit? Let us know in the comments.

The plaintiff is represented by Nicole M. Cvercko and Tulio D. Chirinos of Chirinos Law Firm PLLC, Paul M. Secunda of Walcheske & Luzi LLC and Seth J. Bloom of Bloom Legal LLC.

The JPMorgan tobacco surcharge class action lawsuit is Robyn D. Carmichael v. JPMorgan Chase & Co., Case No. 1:26-cv-00305, in the U.S. District Court for the Southern District of New York.

Read About More Class Action Lawsuits & Class Action Settlements:

• Curtis International expands Frigidaire Minifridge recall due to fire hazard
• Google agrees to $8.25M settlement over Play Store children’s privacy class action
• GameStop class action alleges digital games misrepresented as purchases
• Hand & Stone class action claims spa chain shared health data with Google, Meta, TikTok