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Wal-Mart law thrown out

The Fourth District Court of Appeals upheld a lower court ruling that tossed out a Maryland law which required private companies that employ 10,000+ people to spend at least eight percent of their payroll on health benefits:

Judge Paul V. Niemeyer, the opinion's author, concluded that the bill conflicted with the federal Employment Retirement Income Security Act, which allows companies to create a uniform system of benefits across several states. The Maryland law would have forced Wal-Mart to make special accommodations for employees in that state, Niemeyer wrote.

"This is precisely the regulatory balkanization that Congress sought to avoid by enacting ERISA's preemption provision," he wrote.

Judge William B. Traxler Jr. joined Niemeyer in his decision, while Judge M. Blane Michael dissented.

Like Doug at The Liberty Papers, I'm glad the law has been thrown out, but not thrilled with how they came to that decision.

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