About one in five Americans still smoke. Most employers want to eliminate smokers not only from the workplace, but from their payrolls as well.
In researching this topic I found estimates that the annual additional cost to a company of a smoker can range from about $3,000 to more than $12,000. For more on the personal and financial benefits of quitting, see Quitting Smoking and Financial Security.
On the other hand, trying to terminate, or not hire, smokers raises three questions: 1) Will state laws prevent you from doing so? 2) Does your policy follow the guidelines of federal laws such as the ADA and HIPAA? 3) Will it really be worth the effort?
Advantages
- Lower incidence of heart disease, asthma, lung cancer, and other diseases among employees, thus lowering company group health insurance rates.
- Less absenteeism and shorter breaks, increasing productivity.
- Reduced conflict between smokers and non-smokers.
Disadvantages
- You'll reduce the job applicant pool by roughly 20% to 25%.
- You might offend some of your best workers.
State law may prohibit this practice in many places. Twenty-nine states and the District of Columbia have laws that prevent employers from discriminating against employees for using tobacco products; some of these laws include exemptions for certain professions.
Although some states do not specifically prohibit employer action against smokers, they may protect workers for engaging in lawful activities outside the workplace.
Public health groups note that many statutory protections contain loopholes or weak enforcement. I encourage employers to consult reliable resources that summarize relevant state statutes and exceptions.
Although smoking and alcohol use are not protected categories per se, health conditions that result from those behaviors might be protected. For example, an employer might be able to discipline an employee for smoking but not for firing someone solely because they have a smoking-related medical condition.
HIPAA and related rules allow certain employer actions tied to health plan costs, but they also limit how far penalties toward employees can go. For information on how employee health risks affect coverage and workplace costs, see Workers Compensation and Health Risks.
There is also an argument about personal freedom and slippery slopes: restricting smoking could lead to pressure about other personal choices such as diet or exercise. Many smokers who follow workplace rules are productive and valuable employees, so weigh the costs and benefits carefully.
If you want practical steps for encouraging cessation among employees, see Reasons to Quit Smoking.
Frequently Asked Questions
Is it legal to refuse to hire someone because they smoke?
Laws vary by state; some jurisdictions prohibit employment discrimination based on tobacco use while others allow employer restrictions.
Can an employer charge smokers more for health insurance?
Certain workplace health plan designs can include higher premiums tied to tobacco use, but federal rules and state laws may limit how much of a penalty is allowed.
Should employers offer cessation support instead of firing smokers?
Offering quitting support, such as counseling or smoking-cessation programs, can reduce health costs and preserve employee morale while achieving healthier outcomes.
Where can I get guidance on state laws about tobacco use and employment?
Consult state labor agencies, reliable public health resources, or an employment law specialist to understand the rules in your jurisdiction.