Weyco’s ban on employee smoking
Asbjorn Osland & Pam Wells, San Jose State University
Case Objectives and Use
The case discusses the ethical considerations of banning tobacco use by employees on their free time in addition to while at work. Weyco did so and set of a public relations furor. Also considered is the use by employers of health risk assessment tools to determine premiums paid by employees or incentives paid by employers to employees. The practical HRM issues in considering health risk assessment are discussed. The intended uses of the case are for undergraduates in business and society undergraduates, in terms of ethics; HRM undergraduates, in terms of changing perceptions of health risk assessment; and OB, in terms of organizational change strategies in sensitive areas such as employee lifestyle choices.
Case Synopsis
Weyco, Inc., led by CEO Howard Weyers, adopted a no smoking policy on January 1, 2005 to curb soaring health costs for employees and to help employees improve their health. Employees could not smoke anywhere, not even at home, and were forced to take a test to prove they had quit. One employee quit before the policy was implemented and four more were fired for refusing to take the test. An estimated 18-20 of the company’s 200 employees had been smokers and as many as a dozen quit. At the time the Weyco decision was legal in Michigan. However, many people wonder about the wisdom of employers intervening in employees’ personal lives regarding smoking. Should an employer be able to insist that employees refrain from smoking anywhere? What other measures are employers likely to take to improve wellness and reduce health care costs? There are political and ethical dimensions to consider. Weyco explains its anti-smoking policy in terms of the rising health costs fostered by smoking and the negative impact smoking has on peoples’ health and longevity. Weyco stopped hiring smokers in 2003. In early 2004, Weyers assessed a $50 smoking fee for each employee that smoked. However, the company waived the fee for employees who passed a nicotine test or signed up for a smoking cessation class. Weyco’s policy was that employees would be suspended for 30 days without pay if they tested positive in a random test for tobacco use or were discovered to be using tobacco. The suspended employees would then be tested upon return and would be subject to multiple random tests after that. If they failed a second test they would be dismissed. Weyco’s wellness program could result in a $110 bonus/month if goals were met. The case goes beyond Weyco to discuss the difficulties of smoking cessation. Health risk assessment, with particular emphasis on obesity, which rivals tobacco in terms of adverse public health impact, is also discussed.
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The authors developed the case for class discussion rather than to illustrate either effective or ineffective handling of the situation. The case, instructor’s manual, and synopsis were anonymously peer reviewed and accepted by the North American Case Research Association (NACRA) for its annual meeting, October 27-29, 2005, North Falmouth, MA. All rights are reserved to the authors and NACRA. ©2005 by Asbjorn Osland and Pam Wells. Contact person: Asbjorn Osland, Dept. of Organization & Management, College of Business, San Jose State University, One Washington Square, San Jose, CA 95192-0070, 408-924-3574,