Yes, it can.
In fact, many companies now are refusing to hire anyone who smokes. The reasons vary but, regardless, it is legal to not hire smokers.
Question added to topic Human Resources • May 18, 2010
Can not smoking be a condition for employment?
I'm opening a retail store and do not want to hire anyone who smokes given the smell could get on the clothing in inventory.
Penny is a seasoned human resources executive and consultant with over 25 years of diverse business experience in advising enterprise leaders on employment-related matters.