From the Golden Gate to the Supreme Court
Posted by Nancy G. Berner
On Friday, February 8, 2008, the Golden Gate Restaurant Association (“GGRA”) appealed to U.S. Supreme Court Justice Anthony Kennedy seeking, in essence, to stop enforcement of the portion of the San Francisco Health Care Security Ordinance mandating employer spending requirements for employee healthcare. The employer spending requirement was deemed unenforceable by the U. S. District Court in December 2007. The City of San Francisco appealed that decision; the following month, the Ninth Circuit stayed the lower court's ruling during the City’s appeal, meaning that employers must make the mandated payments while the dispute works its way through the appellate process.
It is this latest ruling – namely, that San Francisco employers make payments that may or may not eventually be found enforceable – that the GGRA seeks to overturn. Plainly put, the GGRA has asked the Supreme Court to stay the requirement that employers make required payments until the courts determine whether or not the mandate is legally viable. Justice Kennedy has the option of either acting alone on the GGRA’s petition, or referring it to his colleagues, and has requested a response from the City by 5:00 pm, Wednesday, February 20th.
For the immediate future, however, the law has not changed, and employers must make the mandated payments until and unless the Supreme Court says otherwise. Please contact us directly to discuss any questions you may have relating to this matter.