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Smoking Might Get You Fired

Recently Weyco, Inc., a Michigan medical benefits administration company, made headlines when it adopted a no-smoking policy that required employees to quit smoking during their private time and/or submit to a smoking test or be fired. While Weyco's policy made the headlines, it is not the only company to place such smoking restrictions. Some argue that such restrictions are the trend of the future given increasing health insurance costs.

Four Fired For Refusing Anti-Smoking Test

In 2003, Weyco announced its intent to prohibit employees from smoking even when off-duty. In January 2005, Weyco's Drug, Alcohol and Tobacco Free Workplace Policy went into affect. The policy specifically says "smoking or otherwise using tobacco at any time" is prohibited and will result in disciplinary action up to termination. Weyco's previous policy only prohibited smoking on company premises.

Failure to submit to a company smoke/tobacco test is also prohibited and results in immediate termination. The policy calls for both random testing and testing based on reasonable suspicion of smoking.

The policy also specifically states that "employees will be required to state in writing their intentions regarding continuing their employment in 2005 as a non-smoker. Positions occupied by an employee that self-identifies as a smoker and/or fails to agree to be a non-smoker by January 1, 2005 will be considered open effective January 1, 2005."

Furthermore, "employees not signing the intention to be tobacco free statement will be excluded from consideration for posted, open positions."

Unannounced testing took place the first week of January and those who failed the test were to be terminated effective January 7, 2005.

Four workers were fired for refusing to take the test to determine if they smoked cigarettes.

Weyco Feels Policy Successful

Weyco believes the policy has been successful – even if they did get a lot of negative media attention. Weyco estimates that about 18 to 20 of the company's 200 employees were smokers when the policy was first announced in 2003 and that as many as 14 have quit. Weyco offered smoking cessation help, including employee meetings, smoking cessation classes, medication and acupuncture classes.

Weyco has responded that it "has the right to protect itself from the enormous financial damage that tobacco users inflict upon society by destroying their own health."

Smoking Costs Employers

The fact of the matter is that a smoking employee costs the employer more.

According to the Centers for Disease Control our nation's cost of smoking is $3,391 a year per smoker - - $1,760 for lost productivity and $1,623 in excess medical expenditures. The economic burden of smokers is more than $75 billion per year in medical expenditures and $80 billion a year from lost productivity.

The American Lung Association states that a smoking employee costs the employer at least $1,000 a year more than a non-smoking employee in direct and indirect health care costs. It is estimated that an employer's health insurance costs could be reduced by almost 20% if it employed only non-smokers.

In times of rising health insurance costs, these savings may be critical.

"Employers are realizing t he majority of health costs are spent on a small minority of workers," Bill Whitmer, chief executive of the Health Enhancement Research Organization, an employer and health care coalition, told the Los Angeles Times.

There are also numerous indirect costs to the employer from a smoking employee, including increased employee absenteeism, decreased productivity on the job, and increased early retirement due to ill health. Smoking employees are absent an average of 6.5 more days a year than non-smokers.

Other studies show that accidents, injury rates and disciplinary problems are higher among smokers.

Other Employers Have Similar Policies

Weyco is not the only, nor is it the first, employer to have an off-hour smoking ban. A recent study conducted by the Society for Human Resources Management found that nearly a third of U.S. employers had introduced programs to encourage staff to stop smoking; 5 percent preferred not to hire smokers and 1 percent flatly refused to take on applicants who admitted their habit.

Others who have taken an aggressive stance against off -duty smoking include:

  • Union Pacific Railroad company announced a no-smoking policy for employees in 2004, both on and off premises, and questions job applicants about smoking on applications. Job applicants who smoke will not be hired. The company said it was forced to make the decision because of rising health care costs.
  • Alaska Airlines requires job applicants to pass a nicotine test before being hired.
  • Alabama Governor Bob Riley is pushing legislation that would charge state employees and teachers who smoke an extra $20 per month.

Is It Legal?

Critics of Weyco and other companies with similar policies argue that companies are going too far in the effort to cut health costs or protect the health of workers. Many feel that smokers are being unfairly singled out and wonder what is next – policies that prohibit occasional drinking off hours, perhaps, since alcohol consumption also increases health care costs. Critics are also concerned about the issue of privacy in the workplace.

Are smokers who smoke on their own private time protected from discrimination? The answer to that question depends on where you live. Twenty-nine states and the District of Columbia have smokers' rights laws that protect smokers from being fired, or prohibit discrimination on the basis of the use of "lawful products outside the workplace."

California is not one of those twenty-nine states with smokers' rights protections. Generally, unless the company's actions can be shown to violate a state or federal law or discriminate against a protected class, smokers may have an uphill battle challenging such policies.

Few court decisions have addressed these types of policies. According to the National Law Journal, a 10th Circuit Court of Appeals case upheld the right of the Oklahoma City Fire Department to have a no-smoking policy, finding that the rule had a legitimate business purpose.

The greater issue may come with the type of random testing found in Weyco's drug testing policy. The policy requires random testing of all employees - - not just pre-employment screening or reasonable suspicion testing - - for what is a legal substance, tobacco. Generally, the law surrounding drug and alcohol testing policies has developed to not allow random testing of non-safety sensitive positions and to only allow testing upon reasonable suspicion of use of illegal drugs. A challenge on the basis of privacy rights may be made to the type of random testing Weyco has.

What Should Employers Do?

This is an issue that will likely remain in the national spotlight for a while. Employers who are considering any type of policy restricting smoking during private time should consult with labor and employment counsel to discuss potential legal implications of the desired policy.