Waffle House lawsuit: Employees seek refunds over alleged illegal tobacco health insurance surcharge

July 7, 2026 - 21:35

If you work at Waffle House and use tobacco products, you might have been paying an extra charge on your health insurance that a new federal lawsuit claims was illegal. A Georgia woman is now seeking refunds for herself and thousands of other employees who she says were unfairly hit with this surcharge.

The lawsuit, filed in federal court, argues that Waffle House imposed a monthly tobacco surcharge on workers who enrolled in the company's health plan and admitted to using cigarettes, chewing tobacco, or other nicotine products. The plaintiff claims this practice violated federal law because the company did not properly disclose the surcharge or offer a way for employees to avoid it by completing a wellness program. Under the Affordable Care Act, employers can charge tobacco users up to 30 percent more for health insurance, but only if they meet specific rules about notice and alternative options.

The woman, who worked at a Waffle House in Georgia, says she paid the extra fee for months without knowing she could have qualified for a discount by taking a smoking cessation class. She is asking the court to force the company to repay all affected employees, plus interest and legal fees. Waffle House has not yet filed a formal response to the lawsuit, but the case could set a precedent for how restaurant chains and other large employers handle tobacco surcharges in their health plans.