IOWA – Casey’s General Store faces a federal lawsuit for allegedly imposing a tobacco-use surcharge for health insurance coverage for employees.
The lawsuit claims the $35 per pay period charge, or $910 per year, amounts to an illegal cash grab by Casey’s that’s being masked as a wellness program.
The suit seeks class-action status, but has been filed on behalf of Carroll County, Missouri Casey’s employee Elizabeth Blalock. Her attorneys argue Casey’s workers are assumed to use tobacco unless they sign a sworn affidavit that they don’t. The suit alleges any employee who doesn’t hand in the document by a deadline has to pay a tobacco surcharge for the entire year even if they don’t use tobacco.
The lawsuit surrounds the Employee Retirement Income Security Act of 1974 allowing employers to use a tobacco-use surcharge only connected with wellness programs meeting federal guidelines made in 2014.
Ankeny, Iowa-based Casey’s General Store has nearly 2,900 locations in 20 states including North Dakota and Minnesota according to its website.
Flag Family News has reached out to the Koley Jessen Law Firm in Omaha which is representing Casey’s in this lawsuit.
