"Wal-Mart Bill" Preempted By Federal Law
Maryland law requiring corporations with 10,000 or more workers to spend 8 percent of their payrolls on health insurance, or pay the difference into a state fund was found to be preempted by Employee Retirement Income Security Act (ERISA). By a 2-to-1 ruling, the United States Court of Appeals for the Fourth Circuit in Baltimore found that the Maryland law was preempted by ERISA, a 32 year old federal labor law. ERISA was developed to allow large companies to uniformly administer health benefits across the country, rather than becoming entangled in state-by-state requirements. Here is the opinion.
We have commented previously that it is likely California’s attempts to impose employer funded health insurance will encounter similar challenges.
We have commented previously that it is likely California’s attempts to impose employer funded health insurance will encounter similar challenges.
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