Time & Attendance
By Staff Report
Sep. 16, 2011
The city of San Francisco can enforce its law that requires employers to spend a certain amount of money on health care coverage or pay a fee to help fund coverage for uninsured city residents, a federal appeals court panel ruled.
The unanimous ruling by a three-judge panel of the 9th U.S. Circuit Court of Appeals stays enforcement of a December decision by a federal judge that the Employee Retirement Income Security Act pre-empts the San Francisco law.
In the January 9 ruling, Appeals Court Judge William Fletcher said the city has a “strong likelihood in prevailing in its argument that the law is not pre-empted by ERISA.
“The ordinance does not require any employer to adopt an ERISA or other health plan,” Fletcher wrote.
Because the city is likely to win its appeal of U.S. District Judge Jeffrey White’s ruling, the city should be allowed to enforce the employer spending requirement while the case remains before the appeals court, Judge Fletcher said.
The 2006 law, challenged by the Golden Gate Restaurant Assn., requires employers with at least 20 employees to spend either a certain amount of money on health insurance coverage or pay that amount to the city.
Employers with at least 100 employees must make minimum health care expenditures of $1.76 per hour on behalf of each covered employee, while employers with 20 to 99 employees must pay $1.17 per hour.
About 90 percent of employers with 20 or more employees already spend at least the required amount on health care coverage for their employees, according to court papers filed by the city.
It isn’t known when the appeals court will rule on the legality of the health care spending law.
Come see what we’re building in the world of predictive employee scheduling, superior labor insights and next-gen employee apps. We’re on a mission to automate workforce management for hourly employees and bring productivity, optimization and engagement to the frontline.
ComplianceMinimum Wage by State in 2023 – All You Need to Know
Summary Twenty-three states and D.C. raised their minimum wage rates in 2023, effective January 1. Thr...
federal law, minimum wage, pay rates, state law, wage law compliance
LegalNew Labor Laws Taking Effect in 2023
The new year is fast approaching, and with its arrival comes a host of new labor laws that will impact ...
labor laws, minimum wage, wage and hour law
LegalWage and Hour Laws in 2022: What Employers Need to Know
Whether a mom-and-pop shop with a handful of employees or a large corporation staffing thousands, compl...
compliance, wage and hour law