RILA pleased with health care ruling

ARLINGTON, Va. The Retail Industry Leaders Association announced yesterday that it was pleased with a federal court decision that invalidated Suffolk County, New York ’s mandated health benefits law. According to RILA, the ruling embraced arguments made in a legal challenge initiated by the Association in February 2006.

"We're gratified by the court's decision holding that Suffolk County's mandated health care law is preempted by ERISA," said RILA President Sandy Kennedy. “This is the second mandated health care law to be invalidated as the result of a legal challenge initiated by RILA.”

The first such decision was issued in July 2006 by the United States District Court in Baltimore, Md., which invalidated a similar statute. The District Court’s decision was then upheld on appeal to the United States Court of Appeals for the Fourth Circuit in a decision handed down in January.

According to RILA, Maryland’s law would have required certain Maryland employers with 10,000 or more employees who did not spend 8% of wages on health care to either increase spending to the 8% threshold, or pay the difference to the state.

Suffolk County’s law, as amended, would have required certain large retail stores selling groceries to make health care expenditures for most non-managerial full-time, part-time and seasonal employees equivalent to a “public health cost rate” to be determined by Suffolk County.

RILA initiated its legal challenges to the Maryland and Suffolk County laws on Feb. 7, 2006 with the unanimous approval of its board of directors.