Judge overturns state law requiring Wal-Mart to spend more on heath care
By Brian Witte, Associated Press

http://www.usatoday.com/money/industries/retail/2006-07-19-walmart-healthcare_x.htm?csp=34

BALTIMORE — A federal judge on Wednesday overturned a Maryland law that 
would have required Wal-Mart Stores (WMT) to spend more on employee 
health care, arguing the retail giant "faces threatened injury" from the 
law's spending requirement.

The state law would have required large employers to spend at least 8% 
of payroll on health care or pay the difference in state taxes. Only 
Wal-Mart would have been affected by Maryland's law.

U.S. District Judge J. Frederick Motz concluded that the law would have 
hurt Wal-Mart by requiring it to track and allocate benefits for its 
Maryland employees in a different way from how it keeps track of 
employee benefits in other states. Motz wrote that the law "imposes 
legally cognizable injury upon Wal-Mart."

The Retail Industry Leaders Association, of which Wal-Mart is a member, 
filed the lawsuit contesting the legislation. The group contended the 
law unfairly targeted the world's largest retailer.

Without the court's intervention, the law would have taken effect in 
January.

Lawyers for the state argued before Motz that the so-called Wal-Mart law 
wasn't an illegal mandate. They said Wal-Mart was free to pay the 
penalty — estimated at $6 million a year — instead of providing 
additional benefits. As another alternative, the retailer could also 
have set up health clinics for its employees.

Other states have considered bills similar to Maryland's, although no 
other state has adopted one.

In Maryland, where state budget writers were looking for ways to rein in 
a $4.6 billion annual Medicaid tab, the Wal-Mart law was seen as a way 
to encourage companies to keep employees off public rolls. It became law 
last winter when the Democratic legislature overrode a veto by 
Republican Gov. Robert Ehrlich.


Reply with a "Thank you" if you liked this post.
_____________________________

MEDIANEWS mailing list
[email protected]
To unsubscribe send an email to:
[EMAIL PROTECTED]

Reply via email to