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The Future Of Pay-Or-Play Laws

Law360 (August 10, 2006, 12:00 AM EDT) -- On January 12, 2006, the Maryland legislature enacted, over the Governor’s veto, the Fair Share Health Care Fund Act (the "Maryland fair share law"), which requires businesses with 10,000 or more employees to spend 8% (6% in the case of nonprofit organizations) of their payrolls on employee health care benefits.

If an employer’s spending falls short of the mandated amount, the difference must be paid to a state fund set up for the purpose of defraying state health care costs for the uninsured. There is a...
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