Zachary Holdings facing class action lawsuit over tobacco surcharges in employee health plan

Zachry Holdings Inc. is facing a proposed class action lawsuit alleging that its employee health insurance plan imposes unlawful tobacco-use surcharges. The complaint claims these charges violate the Employee Retirement Income Security Act (ERISA) by failing to meet federal standards for wellness programs. This legal action follows a series of similar lawsuits filed against San Antonio employers challenging the compliance of their health benefit practices.
Engineering and construction giant Zachry Holdings Inc. has become the latest San Antonio employer sued over tobacco-use health insurance surcharges, adding to a growing wave of litigation challenging employee wellness programs under federal benefits law. The proposed class action complaint alleges Zachry Holdings, which operates as Zachry Group, unlawfully imposes a tobacco-use surcharge as part of its health insurance plan in violation of the Employee Retirement Income Security Act, or ERISA.…
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