J.B. Hunt Agrees to $3.18M Tobacco Surcharge Deal
Lowell-based J.B. Hunt Transport Services Inc. has reached a $3.18 million settlement over weekly tobacco surcharges charged to employees.
Updated on Nov. 13, 2026 in Unions
J.B. Hunt Transport Services Inc. agreed to pay $3.18 million to settle a suit by employees who paid tobacco surcharges under the company's employee benefits plan. An unopposed motion for preliminary approval of the settlement was filed with the court.
Why it matters
The case centers on whether the plan's $15 weekly tobacco surcharge met legal standards, including whether a reasonable alternative standard was offered and whether required notice was provided. For Lowell readers, the outcome bears on how a major local employer structures workplace health benefits and communicates them to workers.
The unopposed motion for preliminary approval was filed November 10 in the U.S. District Court for the Western District of Arkansas, Fayetteville Division, and the court has not yet ruled on it. The case has not been granted class action status, and the settlement remains subject to court approval.
The players
J.B. Hunt Transport Services Inc.
A publicly traded freight and transportation company headquartered in Lowell, Arkansas, that operates trucking, intermodal and logistics services across North America.
The details
Plaintiffs Michael Barker and George Cross sued on behalf of themselves and a settlement class of employees who paid the surcharge through the J.B. Hunt Transport Inc. Employee Benefits Plan. The plaintiffs argued the plan lacked a compliant reasonable alternative standard for the surcharge and did not provide required notice in all plan materials, and the parties reached the agreement in mediation.
Timeline
June: Suit first filed in federal court.
Mid-September: Mediation agreement documents filed with the court.
November 10: Unopposed motion for preliminary approval of the settlement filed.
Legal Context
Tobacco surcharges in employer health plans have drawn scrutiny under federal rules requiring a reasonable alternative standard and clear disclosure to participants. This settlement follows that pattern of employee challenges to how wellness-linked surcharges are structured and communicated.
Employees who paid the $15 weekly tobacco surcharge through the plan may be eligible for a share of the settlement once the court approves it. Workers in Lowell and across J.B. Hunt's network should review their plan materials for how the surcharge is applied.
The takeaway
Workplace wellness incentives can carry legal obligations, and employees should check how surcharges are applied and disclosed in their benefit plans. Settlements like this one often hinge on whether the required notices reached participants.
What happens next
The court is expected to rule on the unopposed motion for preliminary approval of the settlement.
Further reading
For related coverage of labor and workplace benefit disputes, see Unions in the Lowell section.
Source note: This article includes information reported by Northwest Arkansas Democrat Gazette.
