DOL, HHS, and Treasury Issue Joint Guidance on Wellness Program Tobacco Surcharges
HR Dive · United States · Aug 27, 2026
Three federal agencies — DOL, HHS, and Treasury — issued joint FAQ guidance on August 26, 2026, addressing employer questions about tobacco-use surcharges in group health plans amid a wave of class-action lawsuits. The guidance clarifies that agencies will not pursue enforcement action against employers who fail to retroactively provide wellness awards when employees complete a reasonable alternative standard. While the FAQs offer helpful framing for structuring compliant wellness programs, attorneys caution that employers remain exposed to private class-action litigation, which the guidance does not shield against. Staffing firms and employers managing large, diverse workforces with group health offerings should review their wellness program structures in light of this new clarity.
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