Wal-Mart Wins Case on Health Care Costs

The Washington Times (Washington, DC), July 20, 2006 | Go to article overview

Wal-Mart Wins Case on Health Care Costs


Byline: Jen Haberkorn, THE WASHINGTON TIMES

A federal judge yesterday overturned a Maryland law that required Wal-Mart Stores Inc. to spend at least 8 percent of its payroll costs on health care for its employees.

U.S. District Judge J. Frederick Motz ruled that the law violates the Employment Retirement Income Security Act (ERISA), a federal law that sets minimum standards for pensions and health plans. The U.S. Supreme Court has struck down similar state laws that conflict with the federal law, ruling that ERISA pre-empts any state law related to employee benefit plans.

Kevin Enright, a spokesman for the Maryland Attorney General's Office, told the Associated Press the state would appeal to the 4th U.S. Circuit Court of Appeals in Richmond. He argued that the law is not pre-empted by ERISA because employers can choose to pay the health care fees in the form of a tax.

Yesterday's ruling was the third time this month that the Maryland General Assembly has been rebuffed.

Moody's Investors Service lowered Baltimore Gas and Electric Co.'s rating last week to nearly junk status, making it more difficult for the utility to borrow money as the General Assembly forces it to finance higher energy costs instead of passing along rising prices to consumers.

In addition, an appeals court judge blocked the legislature's attempt to fire the entire Public Service Commission.

Moody's called the mass firings "a highly unusual event in the modern history of the U.S. regulated utility industry."

Judge Motz said in his opinion yesterday that the state's health care law, which would go into effect Jan. 1, would hurt Wal-Mart.

"[T]he Act imposes legally cognizable injury upon Wal-Mart by requiring it to make a report to the secretary about the amount of its payroll and health care contributions," and tracking Maryland costs separately from the rest of the country, the judge wrote.

The Retail Industry Leaders Association (RILA), the trade group that challenged the law, also argued that the law violated the equal protection clause of the U.S. Constitution because it targeted only Wal-Mart, but the judge ruled against RILA on this point.

Though Judge Motz said many times in his opinion that Wal-Mart was obviously targeted in the law, he said the court cannot rule on the motivations of the General Assembly and that the Supreme Court has applied the clause only to politically vulnerable groups, such as women and minorities.

The law, dubbed "the Wal-Mart health care bill" when voted on in the General Assembly, was aimed at Wal-Mart. Only four companies in the state met the first threshold of having more than 10,000 employees. Giant Food Inc., already paid more than 8 percent to employees, Johns Hopkins University only had to meet a 6 percent threshold as a nonprofit, and Northrop Grumman Corp., lobbied for and won exclusion for companies with employees earning more than the Maryland median household income.

Wal-Mart did not return calls for comment yesterday. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Wal-Mart Wins Case on Health Care Costs
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.