What’s the impact from recent court decisions?
Recently, the 9th Circuit Court ruled that ERISA did not pre-empt San Francisco’s Health Care Security Ordinance, which requires local employers to make specific health care expenditures on behalf of their employees. Employers should monitor the ultimate ruling, which will be rendered by a full panel of judges from the 9th Circuit Court of Appeals, because it may influence how other courts view ERISA pre-emption. What actions should employers take now? The debate has just begun, so employers have time to monitor the situation and potentially influence the outcome by taking these steps: • Be aware and be involved. Talk with your company’s advisers, consultants, professional associations and trade associations about the impact of ERISA preemption reform. Let your voice be heard. • Calculate the impact. Understand how reform might impact your business and the bottom line. Communicate your findings to your representative and be sure to point out any unintended consequences Congress may hav
