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ERISA preempts San Francisco Health Care Security Ordinance
December 27, 2007 by Ross Runkel at LawMemo
United States District Court for the Northern District of California has held that San Francisco's Health Care Security Ordinance is preempted by ERISA. The ordinance would require private employers with 20 or more employees to make heath care expenditures of specific amounts per hour of work. The Ordinance sets out a number of non-exclusive qualifying health care expenditures, such as contributions to health savings accounts, direct reimbursement to employees for some of the expenses incurred in the purchase of health care services, payments to third parties for the purpose of provided health care services, costs incurred in the direct delivery of health care services, or payments by the employer to the City “to be used on behalf of covered employees.”
Golden Gate Restaurant Assoc v. San Francisco (N.D. California 12/26/2007)
The court granted summary judgment for the plaintiff opposing the ordinance on the grounds that (1) it has an impermissible connection with employee benefit plans and (2) its expenditure requirements make unlawful reference to employee benefit plans.
Earlier reports on this case:
- Workplace Prof Blog: San Francisco Health Law Falls to ERISA Preemption
- What's New in Employment Law?: ERISA Preempts San Francisco Health Care Ordinance
- calitics: SF's Employer Health Care Mandate Struck Down
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