San Francisco’s Health Care Ordinance Stands
On September 30, 2008, the 9th U.S. Circuit Court of Appeals rendered its Opinion relating to ERISA preemption of the City of San Francisco’s Health Care Security Ordinance (Golden Gate Restaurant Assn. vs. City and County of San Francisco; Case No: 07-17370, 9/30/08). The 9th Circuit Court has upheld the Ordinance, which went into effect 1/9/08 for employers with 50+ employees; 4/1/08 for employers with 20+ employees.
Based upon this decision, employers will have to continue to comply with the Ordinance. We will wait to see whether the challenge will be taken to the Supreme Court, since the 9th Circuit decision is in polar opposition to the 4th U.S. Circuit Court of Appeals decision in the so-called Wal-Mart case, arising as a result of an attempt by the State of Maryland to mandate that employers provide a certain level of coverage, or pay a tax (the “Fair Share Act”).
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