A retail trade group has gone to federal court to challenge a new Maryland law that could require large employers to spend a minimum amount on health benefits.
The Retail Industry Leaders Association, Arlington, Va., filed suit against the law Tuesday in the U.S. District Court in Baltimore.
The law, sometimes called the “Fair Share” bill or the “Wal-Mart” bill, would require employers with more than 10,000 employees in the state to spend a minimum of 8% of company payroll on employee health care costs, either by buying private insurance coverage or by paying into a state fund.
Gov. Robert Ehrlich, R-Md., vetoed the legislation, arguing that it violates federal law and would hurt business in the state, but the Democrat-controlled legislature voted to override the veto in January.
Although Wal-Mart Stores Inc., Bentonville, Ark., is one of several companies with more than 10,000 employees in Maryland, it is the only one that does not already meet the 8% spending threshold.