Waffle House class action lawsuit overview:
- Who: A former employee is suing Waffle House Inc.
- Why: The plaintiff claims Waffle House illegally charges employees a tobacco surcharge for health insurance.
- Where: The Waffle House class action lawsuit was filed in Georgia federal court.
A new class action lawsuit alleges Waffle House illegally charges employees a tobacco surcharge for health insurance without offering a reasonable alternative standard.
The plaintiff, a former employee, filed the class action complaint against Waffle House on June 23 in Georgia federal court, alleging violations of the Employee Retirement Income Security Act (ERISA).
The class action lawsuit alleges that Waffle House, a popular restaurant chain, has been imposing an illegal tobacco surcharge on its employees’ health insurance premiums.
The plaintiff claims the surcharge violates ERISA, which prohibits charging higher premiums based on health status unless a compliant wellness program is offered.
Waffle House operates more than 2,000 locations in 25 states, primarily in the Midwest and South, and offers health insurance coverage to its employees through the Waffle House System Employee Benefit Plan, the lawsuit says.
To participate in the plan, employees must disclose their tobacco use, and those who do use tobacco products are required to pay an additional fee of at least $92 per month, or $1,104 per year, to maintain coverage, the lawsuit alleges.
The class action lawsuit argues that such fees, known as tobacco surcharges, must comply with ERISA’s anti-discrimination provisions. Under ERISA, a medical plan cannot charge extra premiums based on health status-related factors, including tobacco use, unless the fee is part of a bona fide wellness program.
Lawsuit: Waffle House failed to disclose wellness program, violating ERISA
The Waffle House class action lawsuit claims that to qualify as a compliant wellness program, a company must offer a reasonable alternative standard, such as a tobacco cessation program, that allows participants to avoid the surcharge.
The complaint alleges that Waffle House failed to properly disclose or inform employees of an available wellness program to avoid the tobacco surcharges.
Furthermore, it claims the company’s wellness program did not meet the necessary criteria, as it did not provide adequate notice or allow participants to receive the full reward of avoiding the surcharge for the entire plan year.
The plaintiff argues that Waffle House’s alleged failure to provide a compliant wellness program and adequate notice renders the tobacco surcharge unlawful and discriminatory under ERISA.
The plaintiff is looking to represent anyone who paid Waffle House’s tobacco surcharge at any time from six years prior to the filing of the complaint to the present.
In addition, the lawsuit seeks class action certification, reimbursement and restitution for affected employees, a court ruling that the surcharge violates ERISA and the applicable law, and an order preventing Waffle House from collecting the surcharge unless it complies with federal requirements.
In other ERISA violations, JPMorgan Chase & Co. was hit with a lawsuit earlier this year with claims it unlawfully imposed punitive health insurance surcharges on employees who use tobacco products. Meanwhile, a CVS employee filed a similar complaint for a tobacco surcharge placed on their spouse.
What do you think of the claims made in this Waffle House class action lawsuit? Let us know in the comments.
The plaintiff is represented by R. Brent Irby of Lyons Irby LLC and William Greg Dobson of William Greg Dobson P.C.
The Waffle House class action lawsuit is Case No. 5:26-cv-00255-MTT, in the U.S. District Court for the Middle District of Georgia.
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