Performance Food Group $4.7M Tobacco Surcharge Settlement

Current and former employees who participated in the Performance Food Group Inc. Health & Welfare Plan and paid a tobacco surcharge between Sept. 30, 2018, and Dec. 4, 2025, may be eligible to claim a cash payment from a class action settlement.

Performance Food Group Inc. agreed to pay $4.7 million to settle a class action lawsuit alleging it violated the Employee Retirement Income Security Act of 1974. The plaintiffs claimed the company’s wellness program discriminated against employees by imposing a tobacco surcharge without providing a reasonable alternative standard as required by law.

Who is eligible for a settlement payment?

Class members are current or former employees who meet the following criteria:

• They reside in the United States.
• They participated in the Performance Food Group Inc. Health & Welfare Plan.
• They paid a tobacco surcharge in connection with their participation in the plan at any time from Sept. 30, 2018, to Dec. 4, 2025

How much is the class action payout?

Cash payment: Each eligible class members will receive a cash payment from the net settlement fund. The settlement administrator will determine each person's final payment amount according to the plan of allocation and using their individual tobacco surcharge payments.

No claim form required

Class members do not need to file a claim to receive a settlement payment.

Payout options

• Paper check mailed to the last address on file with Performance Food Group

$4.7 million ERISA settlement fund

The $4,700,000 settlement fund will include:

• Settlement administration costs: To be determined
• Attorneys’ fees and costs: Up to $1,650,000
• Service awards to class representatives: Up to $7,500 each
• Payments to eligible class members: Remaining settlement funds

Important dates

• Fairness hearing: April 22, 2026

When is the Performance Food Group tobacco surcharge settlement payout date?

The settlement administrator will issue payments to eligible class members after it completes claim processing and the court grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged that Performance Food Group Inc.’s wellness program discriminated against employees by imposing a tobacco surcharge without offering a reasonable alternative standard as required by ERISA. The plaintiffs claimed this violated federal law.

The company denied the allegations but agreed to settle to avoid the expense and uncertainty of continued litigation.

Sources

1. Class notice
2. Settlement website
3. Settlement agreement