In an Aug. 26, 2026, article for Law360, McGuireWoods partners Heidi E. Siegmund and Carolyn M. Trenda and former associate Bret G. Daniel reviewed the dismissal of a putative class action challenging Target’s tobacco surcharge under its employer-sponsored health plan. The authors explained that the dismissal in Williams v. Target Corp. did not end similar cases around the country and that employers should draft benefit plans carefully to minimize litigation risk.
While the Target decision from a federal court in Minnesota “is favorable for employers, the legal landscape around tobacco surcharge wellness programs remains unsettled, with multiple circuit courts poised to weigh in and district courts reaching differing conclusions,” the authors wrote.
Employers should prepare for more uncertainty on this issue, the authors wrote. Among other actions, employers should review their benefits documents and summary plan descriptions and confirm that their wellness plans “provide a clear path for employees to obtain the full reward” of being reimbursed for satisfying their companies’ tobacco wellness programs, the authors noted.
Siegmund’s practice focuses on a wide range of education and employment-related issues, while Trenda advises public, private and non-profit employers on a range of employee benefit topics. The authors first assessed the impact of the Target case in a McGuireWoods legal alert published Aug. 10, 2026.