Another interesting thought diversion...if the employee's smoking is affecting that business owner's insurance costs, then that effects his customer, since he has to charge more to cover expeneses. So in a way, he's striving to offer a better, more competitive service by reducing as many costs as he can.
One thing I didnt realize when i read up on the story some more...he picked up the tab for his employees willing to quit smoking. It isnt like he came in one day and said "Anyone who smokes is outta here next week"
Unless his employees are hired under some sort of offer/contract...if they are simply employees at will, they can will to leave.