Alert: ERISA does not pre-empt San Francisco's employer spending mandate

ERISA does not pre-empt San Francisco's mandate on employers to spend a minimum amount on health coverage for their employees in the city or make a payment to the city, according to a panel of the Ninth US Circuit Court of Appeals. An employer group had challenged the mandate as unenforceable against employers because it relates to employer-sponsored health coverage. The court let the mandate stand, finding that it does not create, have an impermissible connection to or make an impermissible reference to an ERISA plan. The appellate court's decision overturns a lower court's finding that ERISA does pre-empt the mandate. While this decision is likely to be appealed, employers with San Francisco employees will need to continue identifying covered employees, assessing their health care contribution levels and conducting other compliance activities.  (Alert, 30 Sep 2008)

• Full text of Ninth Circuit's decision in Golden Gate Restaurant Ass'n v. San Francisco (PDF)
• Update: San Francisco -- Model for health care reform or ERISA preemption minefield? (6 Feb 2008) (PDF)
• Compliance Quarterly: San Francisco Health Care Security Ordinance in effect -- for now (Q1 2008) (PDF)

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