February 15, 2006


by PG

As many predicted, the "Wal-Mart law" mandating that employers with over 10,000 employees spend at least 8 percent of payroll on health care or contribute the difference to Maryland's Medicaid fund is being challenged for stepping into an area already regulated by federal statute:

The association also said the two laws are invalid because they violate the federal Employee Retirement Income Security Act.
"Over the past three decades, the Supreme Court of the United State has held repeatedly that ERISA, not state and local laws, regulates employer health plans," said Steve Cannon, outside general counsel to the association.
The association in question is the Retail Industry Leaders Association, which represents companies that operate more than 100,000 stores with more than $1.4 trillion in annual sales, and a lawsuit by this body signals that Wal-Mart is not the oppressed discrete minority that some have deemed it to be; it actually is in company with some of its big-box competitors, including Best Buy.

February 15, 2006 5:45 PM | TrackBack
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