Get healthy — or else 

By Michelle Conlin

updated 11:07 a.m. ET Feb. 19, 2007

In August, Joe Pellegrini got yet another nagging phone call. It was his health coach, a woman working on behalf of his employer, the $2.7 billion lawn-care company, Scotts Miracle-Gro Co.  The 48-year-old executive knew the spiel by heart. "Have you been to your doctor yet? When are you going?" Then the prescription: "You need to lose weight and you really, really need to lower your cholesterol."

Pellegrini is a supply-chain executive at Scotts' headquarters in Marysville, Ohio, a land of all-you-can-eat buffets smack in the middle of America's obesity belt. At Scotts the hallways are filled with ldl-abusers and overweight diabetics. Pellegrini, by contrast, is an Armani-swaddled triathlete who often cycles 36 miles to and from work. Lose weight? "Give me a break," he thought. "It's all muscle, folks."

But a time bomb was ticking beneath the taut physique. Medical specialists working on behalf of Scotts had been scouring every aspect of Pellegrini's health. His profile—athletic, high body-mass index, and bad cholesterol (brought on by a love of 28-ounce sirloins) — triggered an alarm.

Eventually, Pellegrini succumbed to the company-applied pressure and agreed to abide by his health coach's action plan, which included an immediate visit to his doctor. A few weeks later, a specialist studying Pellegrini's angiogram spotted the heart valve of what should have been a dead man. Within hours, two stents were installed. The surgeons later told him the 95% blockage would have killed him within five days. "It was that close," Pellegrini says.

About the time Pellegrini was cheating death, a lawn-care technician named Scott Rodrigues was having an entirely different experience with the Scotts wellness program. At the time, Rodrigues says he had been working at the company for about two weeks. He recalls a supervisor approaching him in the parking lot at the company's Cape Cod (Mass.) facility and urging him to get rid of the pack of Marlboro reds poking out of the dashboard of his decrepit Civic.

Rodrigues knew Scotts was going tobacco-free on Oct. 1 as part of its effort to improve employee health and cut medical costs. He recalls the company's interviewer saying that once Rodrigues passed the 60-day probation, Scotts would help him quit his 15-year habit — paying for counseling, Nicorette, prescription drugs, hypnosis. Whatever it took.

But on Sept. 1 — which happened to be his 30th birthday—Rodrigues was fired. "Why?" he asked. "You failed your drug test," the boss replied. Rodrigues insisted it had to be a mistake. He didn't even keep beer in the fridge. Then his boss told him the drug was nicotine. "Five years ago, if you had told me, Hey, you better quit smoking or you might not get a job,' I would have laughed. Here I am five years later, and I can't get a job."

In November, Rodrigues filed a lawsuit, now in federal court in Massachusetts. It alleges that Scotts discriminated against Rodrigues by firing him before he was eligible for health-care benefits and had a chance to take advantage of the stop-smoking initiative. The suit also seeks to prohibit Scotts from "enforcing or applying" its anti-nicotine program. The company hopes to have the suit dismissed. Citing its policy of not discussing pending litigation, Scotts declined to comment on the lawsuit.

Two stories — one man saved by the 11th-hour intervention of his employer; another fired on his 30th birthday for smoking — capture the dilemma facing companies around the country. How do executives looking to cut medical costs persuade employees to take better care of themselves without killing morale and spawning lawsuits? It's a question that's very much on the mind of Scotts CEO Jim Hagedorn, who acknowledges his company's wellness program is controversial. "Jack Welch told me: Man, you have balls of steel,'" says Hagedorn. "This is an area where CEOs are afraid to go. A lot of people are watching to see how badly we get sued."

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