Ruling Poses Problem for California Health Plan

Law360 (January 22, 2007, 12:00 AM EST) -- A federal appellate court ruling that pre-empted Maryland’s controversial “Wal-Mart law” may spell trouble for Gov. Arnold Schwarzenegger’s ambitious proposal requiring most employers to chip in for health coverage so all of California’s residents can be insured.

In a 2-1 ruling last week in favor of the world’s largest retailer, the U.S. Court of Appeals for the Fourth Circuit found that Maryland’s law, aimed at Wal-Mart to force companies with more than 10,000 employees to spend at least 8% of payroll on employee health insurance or...
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