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The ethics of not hiring smokers

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As American’s are becoming increasingly concerned over preserving individual rights in what many view as a burgeoning nanny state, is it ethical to deny someone employment on the sole basis of tobacco use? Many companies believe it is not. And while we all view individual freedoms as a distinguishing factor of our great democracy do we want to see our premiums rise because our colleagues are straining our plans due to their reckless behavior?