Business Costs

Smokefree workplaces are good for health and good for business.

From a business standpoint, going smokefree reduces operating costs, thereby protecting the business owners' pocketbook rather than Big Tobacco's bottom-line.

Smokefree indoor environments lead to:

  1. Lower maintenance expenses (carpets, drapes, cloths, paintwork).
  2. Lower insurance premiums (fire, medical, workers comp, liability).
  3. Lower labor costs (absenteeism, productivity).

All this equals greater profits and a healthier and safer work environment for employees, employers, and patrons alike.

The Society of Actuaries issued a 2005 report finding that secondhand smoke costs the U.S. economy roughly $10 billion a year: $5 billion in estimated medical costs associated with secondhand smoke exposure, and another $4.6 billion in lost wages. This estimate does not include youth exposure to secondhand smoke.

Learn more about business costs at our Advice to Business Owners page.

Research Flash

Lost productivity work time costs from health conditions in the United States
Journal of Occupational and Environmental Medicine 45(12): 1234-1246, December 2003

Impact of smoking status on workplace absenteeism and productivity
Tobacco Control 10(3): 233-238, September 2001

The association of health risks with workers' compensation costs
Journal of Occupational and Environmental Medicine 43(6): 534-541, June 2001