Retail Industry Leaders Association v. Fielder: Legal Foundation Fights Mandated Health Insurance -- Victory!

U.S. District Court and U.S. Court of Appeals for the Fourth Circuit

The NFIB Legal Foundation filed an amicus brief in support of a challenge brought against the so-called "Wal-Mart" or "Fair Share" bill that passed the Maryland legislature in January 2006.  The bill will require private companies with more than 10,000 employees in Maryland to spend at least 8 percent of their payroll on employee health benefits or make a contribution to the state's insurance program for the poor. In its motion for summary judgment, filed in U.S. District Court in Baltimore, the Retail Industry Leaders Association (RILA) asserts that the Maryland law is preempted by federal (ERISA) law. 

While the current bill will not directly impact NFIB members, the indirect impact of the bill on small business cannot be ignored. In opposing the bill last year, Ellen Valentino, director of NFIB/Maryland, warned legislators that the real goal of the Fair Share Health Care Legislation was to require all businesses to provide health insurance to their employees, not just those with 10,000 or more employees. Valentino's warning proved true: A bill has been introduced to require all companies with less than 10,000 employees to spend 4.5 percent of payroll on health care or pay the state an equal amount. Moreover, Maryland's success has given a lift to similar legislative initiatives elsewhere. After Maryland Gov. Robert Ehrlich's veto was overturned, bills were introduced in New Hampshire with a 1,500 threshold, in Rhode Island with a 1,000 threshold, in Washington state with a 5,000 threshold and in New Jersey with a 1,000 threshold.

Status: DECIDED. Amicus brief file in district court March 17, 2006. On July 19, 2006, the court ruled that ERISA preempted the Maryland law.  State appealed to the Fourth Circuit. Amicus brief filed in the federal appellate court Oct. 27, 2006. Fourth Circuit affirmed district court's decision Jan. 17, 2007.