New York’s 2011 Wage Parity Law for home health care workers is not preempted by federal law, the U.S. Court of Appeals for the Second Circuit ruled Friday.

The law—which sets minimum compensation that employers must pay to get Medicaid reimbursement in New York City, Westchester, Suffolk and Nassau Counties—was opposed by home health care service agencies who argued it was preempted by two federal laws: the National Labor Relations Act (NLRA) and the Employee Retirement Income Security Act (ERISA).

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