A federal court granted summary judgment to an association of retailers that sued to strike down a New York county law that would have required certain big box retailers to provide health benefits to non-managerial workers. In his opinion, Judge Arthur Spatt called the law, which would have affected large retailers such as Wal-Mart and Costco, “disruptive” and its proposed administration “unrealistic.”

The 2005 Suffolk County law, amended in 2006, required that large retailers selling groceries must provide employees with health care benefits equivalent to a “public health cost rate” determined by the county.

Spatt ruled July 14 that the so-called Fair Share law was pre-empted by the Employee Retirement Income Security Act, the federal statute regulating employee benefits. In his opinion, Spatt said the law “would interfere with employers' administration of their ERISA plans because employers would have to vary benefits for New York employees.”

Sandy Kennedy, president of the Retail Industry Leaders Association, filed the suit challenging the legality of the mandated health care law. In a statement following the ruling Kennedy said, “We're gratified by the court's decision holding that Suffolk County's mandated health care law is pre-empted by ERISA.”

In January the 4th Circuit struck down a similar law in Maryland, also citing ERISA. The RILA also led the challenge against the Maryland law, which would have required employers with at least 10,000 employees to spend 8 percent of wages on health care or pay the difference to the state.

A federal court granted summary judgment to an association of retailers that sued to strike down a New York county law that would have required certain big box retailers to provide health benefits to non-managerial workers. In his opinion, Judge Arthur Spatt called the law, which would have affected large retailers such as Wal-Mart and Costco, “disruptive” and its proposed administration “unrealistic.”

The 2005 Suffolk County law, amended in 2006, required that large retailers selling groceries must provide employees with health care benefits equivalent to a “public health cost rate” determined by the county.

Spatt ruled July 14 that the so-called Fair Share law was pre-empted by the Employee Retirement Income Security Act, the federal statute regulating employee benefits. In his opinion, Spatt said the law “would interfere with employers' administration of their ERISA plans because employers would have to vary benefits for New York employees.”

Sandy Kennedy, president of the Retail Industry Leaders Association, filed the suit challenging the legality of the mandated health care law. In a statement following the ruling Kennedy said, “We're gratified by the court's decision holding that Suffolk County's mandated health care law is pre-empted by ERISA.”

In January the 4th Circuit struck down a similar law in Maryland, also citing ERISA. The RILA also led the challenge against the Maryland law, which would have required employers with at least 10,000 employees to spend 8 percent of wages on health care or pay the difference to the state.