A seemingly novel lawsuit has emerged challenging a company’s health plan surcharge for employees who have refused the Covid-19 vaccine. Two security guards have initiated a proposed class action against GardaWorld Cash Services Inc. in a North Carolina federal court. Filed on September 16, the plaintiffs argue that GardaWorld’s surcharge violates the Employee Retirement Income Security Act (ERISA)’s discrimination provisions.
GardaWorld’s policy bases itself on longstanding federal regulations that govern workplace wellness programs. However, this approach is unusual as many companies have largely moved away from vaccine mandates and related financial incentives post-pandemic.
The suit presents new legal questions about the legitimacy and potential risks of imposing financial penalties on employees for specific health choices. If successful, it could create a significant precedent, potentially placing other similar employer policies at risk of being challenged as discriminatory under federal law.
This case highlights the complexities and legal challenges employers face as they navigate evolving public health policies and employee rights post-pandemic. To learn more about this lawsuit and its implications, visit the full article on Bloomberg Law.