Migliaccio & Rathod LLP is investigating whether Depository Trust & Clearing Corporation (“DTCC”) administers its employee tobacco surcharge program in compliance with ERISA and federal wellness program regulations.
Publicly available 2026 benefit materials indicate that DTCC imposes a $25 per pay period tobacco surcharge. According to the materials reviewed, employees who do not affirmatively complete a tobacco-use attestation are automatically assigned the tobacco-user premium. The materials raise questions regarding whether employees who are automatically classified as tobacco users receive appropriate notice, an opportunity to correct their status during the plan year, access to a reasonable alternative standard, and reimbursement of surcharges that may have been improperly assessed.
Federal wellness program regulations generally require outcome-based tobacco programs to provide every participant who does not satisfy the tobacco-free standard with a reasonable alternative standard for earning the full premium reward.
What Employees Report
DTCC employees report:
- Being automatically charged a tobacco surcharge after failing to complete a benefits attestation.
- Learning about the surcharge only after payroll deductions began.
- Difficulty correcting their tobacco-user designation.
- Uncertainty regarding available reasonable alternatives.
- Continuing to pay increased premiums after correcting benefit information.
- Receiving limited information regarding reimbursement of previously collected surcharges.
Why Employees Should Be Concerned
Employees should generally have a meaningful opportunity to qualify for the full wellness reward and to correct enrollment mistakes that result in higher health insurance premiums. Automatically assigning employees to a tobacco-user surcharge based solely on an incomplete attestation may raise questions regarding how the program is administered and whether participants receive the protections required under federal wellness program regulations.
This investigation seeks to determine whether DTCC properly administered its tobacco surcharge program and whether employees were improperly assessed tobacco-related premium surcharges.
Potential Claims May Include
- ERISA Violations
- Failure to Provide a Reasonable Alternative Standard
- Improper Wellness Program Administration
- Breach of Fiduciary Duty
- Recovery of Improperly Assessed Tobacco Surcharges
- Declaratory and Injunctive Relief
Signs You May Be Affected
You may be affected if:
- You participated in DTCC’s employee health plan.
- You were automatically charged a tobacco surcharge.
- You did not use tobacco but failed to complete a required attestation.
- You attempted to correct your tobacco status during the plan year.
- You continued paying tobacco-related premiums after requesting corrections.
- You still possess payroll records, enrollment materials, or communications concerning the surcharge.
If you believe you encountered these issues, we would like to hear from you. Please complete the contact form on this page, send us an email at [email protected], or give us a call at (202) 470-3520.