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

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. The lawsuit alleges the surcharge is discriminatory.

Filed by Jerry Griggs, a former Zachry employee, the lawsuit seeks reimbursement of tobacco surcharges paid by employees, repayment of profits allegedly obtained through the program, attorneys fees and other relief. It does not specify how much in damages is being sought or how much employees allegedly paid…

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