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Employers may consider implementing a smoking cessation program to encourage their employees to stop smoking or using tobacco products. To motivate employees, these programs often include a tobacco surcharge. The surcharge is an extra charge on health plan premiums for tobacco users or a discount on health plan premiums for participants who do not smoke or use tobacco.
Smoking cessation programs that include tobacco surcharges must comply with federal rules for
workplace wellness programs. Depending on how the program is structured, employers will need to consider their compliance obligations under two main federal laws—the Health Insurance Portability and Accountability Act (HIPAA) and the Americans with Disabilities Act (ADA).
Employers that do not comply with these federal rules may be subject to employee lawsuits and federal enforcement action by the Department of Labor (DOL) or Equal Employment Opportunity Commission (EEOC).
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