District Court Strikes Down "Fair Share" Law
A federal district court in New York struck down a Suffolk County, N.Y. law that mandated certain "big box" retailers provide employee health benefits.
July 18, 2007 at 08:12 AM
4 minute read
The original version of this story was published on Law.com
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
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
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.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllSEC Puts Beat Down on Ex-Wrestling CEO Vince McMahon for Not Reporting Settlements
3 minute readDOJ Files Antitrust Suit to Block Amex GBT's Acquisition of Competitor
Trending Stories
- 1State Budget Proposal Includes More Money for Courts—for Now
- 2$5 Million Settlement Reached With Stone Academy
- 3$15K Family Vacation Turned 'Colossal Nightmare': Lawsuit Filed Against Vail Ski Resorts
- 4Prepare Your Entries! The California Legal Awards Have a New, February Deadline
- 5DOJ Files Antitrust Suit to Block Amex GBT's Acquisition of Competitor
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250