Wal-Mart Overturns Maryland Law
A federal judge in favor of the Retail Industry Leaders Association finding that a Maryland law requiring certain large employers to provide health care benefits to employees conflicts with federal ERISA law.
August 31, 2006 at 08:00 PM
2 minute read
A federal judge in Maryland ruled July 19 in favor of the Retail Industry Leaders Association (RILA), a trade group representing Wal-Mart Stores Inc. and other large retailers, finding that a Maryland's law that required certain large employers to provide health care benefits to employees conflicts with federal ERISA law.
The Maryland Fair Share Health Care Fund Act, which was to become effective Jan. 1, 2007, would have required “big-box” retailers that do “not spend up to 8 percent of the total wages paid to employees in the state on health insurance costs [to] pay to the secretary an amount equal to 8 percent of the total wages paid to employees in the state.” A federal judge found that law conflicts with federal ERISA law and is null and void.
“This law did nothing to control the cost of health care or improve access to health care, so it's no wonder that legislators in 28 other states rejected this as bad public policy,” said Wal-Mart spokesperson Sarah Clark in a statement.
In related news, Chicago's city counsel voted July 26 to require big-box retailers to pay employees a “living wage” beginning July 2007 of $9.25 an hour wages plus $1.50 in benefits.
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