Maryland "Wal-Mart Law" Held Preempted by ERISA

On Wednesday, Federal Judge J. Frederick Motz overturned Maryland's adoption of what has come to be known as "the Wal-Mart Law."  We have followed the progression of this highly publicized legislation for awhile now on this Blog.   The law, which was set to go into effect in January, would have required non-governmental employers in Maryland with 10,000 or more workers to spend at least 8 percent of payroll on health care or pay the difference in taxes.  The focus of the bill was Arkansas-based employer Wal-Mart.

Judge Motz ruled that the state law imposed health care and welfare mandates and was therefore preempted by the federal Employment Retirement Income Security Act.  It will be interesting to see how this ruling affects the progression of similar legislation that is in the works in other states around the country.