March 17, 2006
FOR IMMEDIATE RELEASE
Contact:
Ronald W. Wineholt, Vice President – Government Affairs
(410) 269-0642 or (301) 261-2858
William Burns, Director of Communications
(410) 269-0642, (301) 261-2858 | Cell: (410) 733-9945
Chamber Challenges “Fair Share” Health Act
Amicus Brief Filed In Support of RILA Lawsuit
Annapolis, MD (March 17, 2006) - The Maryland Chamber of Commerce today filed an amicus brief in support of the Retail Industry Leaders Association’s lawsuit against the State of Maryland on the grounds that the Fair Share Health Care Fund Act is preempted by the federal Employee Retirement Income Security Act (ERISA).
“The Maryland Chamber believes the Fair Share Health Care Act is the type of law intended to be preempted by ERISA. ERISA exists to create one single, comprehensive regulatory scheme for employer-provided benefits, rather than a tangle of state laws,” Maryland Chamber President and CEO Kathleen T. Snyder, CCE said. “By enacting the Fair Share Act, the Maryland General Assembly set a dangerous precedent. In fact, legislation has already been introduced to extend this law to every employer in Maryland.”
The amicus brief was prepared by Smith & Downey, PA, one of the nation's leading law firms with a practice concentrating in the area of human resources law. The Firm's attorneys possess highly focused expertise in all areas of employee benefits, executive compensation and labor and employment law.
The Fair Share Act was enacted on January 12, when the Maryland General Assembly overrode Gov. Robert L. Ehrlich’s veto of the legislation. The law imposes a payroll tax on employers with over 10,000 employees to the extent that the employer's health insurance costs are less than eight percent of total wages paid to employees (six percent for nonprofits).
The Chamber strongly opposed the legislation, which passed both houses of the Maryland General Assembly and was vetoed by the governor. On January 3, the Maryland Chamber challenged the legality of the legislation, and released a letter of advice from Henry A. Smith, III, a partner with Smith & Downey, stating that the proposal was preempted by ERISA.
About the Maryland Chamber of Commerce
The Maryland Chamber of Commerce is a non-profit coalition of more than 800 businesses who employ more than 340,000 people in the state. Its mission is to maximize opportunities for its members and their employees to grow and prosper. For more information about the Chamber, visit its website, www.mdchamber.org or call (410) 269-0642 or (301) 261-2858.
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Amicus Brief
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