U.S. Chamber's Litigation Center Applauds District Court in Wal-Mart Decision

Washington, D.C.- The National Chamber Litigation Center (NCLC) applauded today's decision by the U.S. District Court of Maryland to reject Maryland's "Wal-Mart" law, which would have required large employers to earmark a percentage of payroll spending for health care costs or divert an equal amount of money into a fund to supplement the state's Medicaid budget.

"The decision reminds states they cannot preempt federal law, in this case ERISA, regardless of their intentions," said Steve Bokat, NCLC executive vice president. "ERISA contains a preemption provision because Congress wanted to avoid a patchwork of state regulations with which national companies had to comply. Today's decision strongly affirms that intention."

The Maryland General Assembly enacted the Fair Share Act in January 2006 over Governor Robert Ehrlich's veto. The law would have applied only to for-hire employers with more than 10,000 employees, criteria met only by Wal-Mart. NCLC filed an amicus brief in the court challenge-Retail Industry Leaders Association v. James D. Fielder, Jr.-arguing that it preempted the Employee Retirement Income Security Act (ERISA) and violated the Equal Protection Clause of the U.S. Constitution.

"Other states considering similar laws should think twice before proceeding," said Bokat. "The court is sending a very strong signal that federal laws preempt state laws in these matters." At least thirty other states have considered similar legislation, but none have passed any.

NCLC-the public policy law firm of the U.S. Chamber-is a membership organization that advocates fair treatment of business in the courts and before regulatory agencies. The U.S. Chamber of Commerce is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

NCLC's amicus brief can be viewed here.

www.uschamber.com

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