Customers visiting one of the Casey's General Stores locations can purchase cigarettes, vapes, chewing tobacco, and nicotine pouches. Employees of the convenience store chain who wish to avoid a $35 per pay period insurance surcharge have to produce a signed affidavit stating they don't use any tobacco products.
A lawsuit on behalf of a Casey's employee was filed in the U.S. District Court of the Southern District of Iowa on March 28, 2025. It's expected to become a class action suit. What did Casey's do to upset its more than 18,000 employees?
With over 2,600 locations in the center of the nation, ranging from North Dakota to Florida, Casey's stands as one of the largest convenience store chains in America. The Fortune 500 company prides itself on having stores located in mid-sized and small communities.
Casey's offers health insurance for all employees working full time (35 hours per week) and some part-time workers. Those using Casey's health insurance are subject to a $35 per pay period surcharge if they use any tobacco products.
In addition, all employees are defaulted to tobacco-user status unless an online enrollment system that requires an affidavit proclaiming no tobacco use is completed before a deadline. If the employee misses the deadline, there's no way to change their status to avoid the surcharge until the following year.
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