Maryland Law Requiring Wal-mart to Spend More on Health Care Overruled in Court - Could Have Major Implications For California Employers
A federal judge on Wednesday overturned a Maryland law that would have required Wal-Mart to spend more on employee health care, arguing the retail giant "faces threatened injury" from the law's spending requirement. Click here for article.
California employers should carefully follow the outcome of this case in Maryland. There is similar proposed legislation in California. Click here to read a prior post. "The decision sends a clear signal that employer health plans are governed by federal law, not a patchwork of state and local laws. It also is a clear message that similar bills under consideration in other states and municipalities violate federal law as well," Sandy Kennedy, president of the Retail Industry Leaders Association, told Reuters.
The Maryland law requires large employers to spend at least 8 percent of payroll on health care or pay the difference in taxes and only Wal-Mart is impacted by the law. The proposed California legislation, very similar to Maryland's overturned law, would affect about 70 California employers that have more than 10,000 employees.