Case Overview

| Cases Covered | 2 active class action lawsuits |

| Verticals | Workplace & Employment |

| Key Issues | Health plan surcharges, unpaid wages, meal/rest break violations |

| Workers Affected | Food service, airline, and general workforce employees |

| Status | Newly filed; no settlements reached |

Workplace Class Actions to Watch: Tobacco Surcharges, Unpaid Security Time, and Off-the-Clock Work

Two newly filed class action lawsuits are putting a spotlight on employer wage and benefits practices — and a third legal development raises questions for workers across industries about whether they may be owed back pay for time worked without compensation.

If you work for a large employer, spend time clearing security before your shift, or have ever been penalized on your health plan for tobacco use, these cases may be relevant to your situation.

1. Sysco Tobacco Surcharge Lawsuit

Filed: February 2026

Alleged Violations: ERISA, ADA, HIPAA

Who May Be Affected: Sysco employees enrolled in company health insurance who pay a tobacco-use surcharge

According to a recent report on the class action filing, a new lawsuit alleges that food distribution giant Sysco has been unlawfully charging tobacco-using employees higher health insurance premiums — without offering a compliant alternative for those who cannot meet the standard tobacco-free requirement.

The lawsuit alleges that Sysco's health plan imposes a financial penalty on employees who use tobacco products, but fails to make a "reasonable alternative standard" available as required by federal wellness program rules. Under federal law, wellness incentive programs tied to health-contingent standards — such as whether an employee uses tobacco — must offer employees an alternative way to qualify for the same financial benefit if the standard is medically inadvisable or otherwise unreasonable for that individual, the complaint claims.

The plaintiff argues this structure effectively discriminates against employees based on health status and may violate protections under ERISA, the ADA, and HIPAA's nondiscrimination provisions, according to the complaint.

Sysco is one of the largest food distribution companies in the United States, employing tens of thousands of workers nationwide. The proposed class could include a significant number of current and former employees who paid the surcharge.

Potential recovery: The lawsuit seeks relief for affected employees, which could include reimbursement of surcharge amounts paid, though any compensation would depend on court rulings or a future settlement.

What to do if you're affected: Workers who believe they were charged a tobacco surcharge without a compliant alternative being offered may want to consult with an employment attorney to understand their options.

2. Delta Air Lines / Compass Group California Employment Class Action

Filed: January 2026 (reported February 2026)

Alleged Violations: California Labor Code — unpaid wages, meal and rest break violations

Who May Be Affected: Delta Sky Club workers and Compass Group USA food service employees at LAX

A proposed class action filed against Delta Air Lines and its food service contractor, Compass Group USA Inc., alleges that workers at Los Angeles International Airport were not paid for time spent clearing mandatory security checkpoints and were denied legally required meal and rest breaks, in violation of California labor law.

The complaint was filed by a Delta Sky Club employee who worked at LAX. The lawsuit alleges that employees are required to pass through TSA or airport security before beginning their shifts — and that the time spent in this process goes uncompensated, according to the complaint. Under California law, employers are generally required to pay workers for all hours worked, including time spent on mandatory employer-required activities.

The lawsuit further alleges that Delta and Compass Group failed to provide compliant 30-minute meal periods and 10-minute rest breaks as mandated by California's Labor Code, the complaint states. California's meal and rest break requirements are among the most stringent in the country, and violations can expose employers to premium pay penalties for each missed break.

Delta Air Lines operates Sky Club lounges across major U.S. airports, with food service operations managed through Compass Group, one of the largest contract food service companies in the world.

Potential recovery: Under California law, affected workers may be eligible for back pay for uncompensated security time, plus one hour of premium pay per missed meal period and one hour per missed rest break, according to the complaint's allegations. Any actual recovery would depend on litigation outcomes.

Proof considerations: Workers with pay stubs, time records, or documented shift schedules showing a gap between arrival at the security checkpoint and their official clock-in time may have relevant evidence.

3. Broader Context: Off-the-Clock Work Claims

Filed: Ongoing

Alleged Violations: FLSA, state wage and hour laws

Who May Be Affected: Workers in any industry required to perform pre-shift or post-shift tasks without pay

The Delta/Compass lawsuit is part of a broader pattern of wage and hour litigation targeting unpaid "off-the-clock" work. Legal experts have noted that many workers across industries — including retail, healthcare, food service, and logistics — may be owed back pay for time spent on required activities outside of their official paid hours.

Common examples of potentially compensable off-the-clock time include:

• Security screening — Required bag checks or metal detector screening before or after shifts
• Donning and doffing — Putting on or removing required uniforms or protective equipment
• System login time — Waiting for employer computer systems to boot before a shift begins
• Post-shift work — Completing tasks, filing reports, or cleaning up after the official shift ends

Under the Fair Labor Standards Act (FLSA), employers are generally required to compensate employees for all time that is "suffered or permitted" to be worked, even if the employer did not formally authorize it. California and several other states have even broader protections.

Workers who believe they performed required work outside of their paid hours may be eligible to recover back pay — potentially covering up to two years of unpaid wages under federal law, or three years if the violation is found to be willful. State laws may allow different recovery periods.

Key Takeaways

• Employer wellness program surcharges may have legal limits. Federal law requires health-contingent wellness programs to offer reasonable alternative standards; the Sysco lawsuit alleges the company's tobacco surcharge program fell short of this requirement.
• Security screening time is a recurring legal battleground. Multiple lawsuits across industries have challenged whether employers must pay workers for mandatory pre-shift screening — particularly at airports, warehouses, and retail locations.
• California workers have additional protections. California's meal and rest break laws are stricter than federal standards, making California-based workers a frequent focus of wage and hour class actions.
• Documentation matters. Workers with records of when they arrived versus when they were clocked in — or evidence of missed breaks — may have stronger positions in potential claims.
• No proof of purchase is typically needed for wage claims. Unlike product settlement claims, wage and hour cases are often supported by employer payroll records, which attorneys can request during litigation.

Are you a current or former Sysco employee who paid a tobacco surcharge? Do you work in food service at a major airport? Share your experience in the comments below.

InjuryClaims.com reports on class action litigation and legal developments. This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to understand your specific legal rights.