A federal court struck down a Maryland law July 19 that would have required non-governmental employers with 10,000 or more workers to spend at least 8 percent of payroll on health care or pay the difference in taxes.

The Retail Industry Leaders Association filed a motion for summary judgment in March, arguing that the law unfairly targeted Wal-Mart, one of only four companies in Maryland with 10,000 or more employees.

In his decision, U.S. District Judge J. Frederick Motz determined that ERISA preempts the state law, writing that the legislation, “imposes legally cognizable injury upon Wal-Mart.” The law was slated to take effect in January, one year after its passage.

The Maryland win comes one week before the Chicago City Council is to vote on similar legislation. In dispute in Chicago is whether to pass a measure that would require stores with at least 90,000 square feet that are owned by companies with at least $1 billion in annual sales to pay workers a minimum wage of $9.25 an hour plus $1.50 an hour in benefits.