Nordstrom accused of misusing health plan fees collected from tobacco users

Former Nordstrom employees have filed a class action lawsuit against the Seattle-based retailer, accusing the company of violating federal law by charging a tobacco-use health insurance surcharge without following rules set by the Employee Retirement Income Security Act (ERISA).

The complaint, filed Thursday in U.S. District Court in Seattle, alleges that Nordstrom imposed a $40 monthly surcharge on employees and their dependents who used tobacco products but failed to comply with ERISA’s anti-discrimination rules for wellness programs.

According to the lawsuit, Nordstrom did not provide a legally required “reasonable alternative standard” that would allow employees to avoid or be refunded the surcharge after enrolling in a cessation program…

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