Wal-Mart Off the Hook—Judge Overturns Maryland Fair Share Health Care Law

by Mike Hall, Jul 19, 2006

Maryland’s Fair Share Health Care law, which requires large employers such as Wal-Mart to spend at least 8 percent of their payroll on employee health care or pay into a state fund, was overturned this afternoon by a federal judge.

The law was designed to encourage health coverage for workers at large, profitable companies and to prevent rich firms from sticking taxpayers with the health care costs of employees who are forced to turn to publicly financed health care such as Medicaid.

AFL-CIO President John Sweeney said today’s ruling will in no way deter working families from demanding large corporations live up to their responsibility and do their part to address our nation’s health care crisis.

It is unconscionable that while Congress refuses to reform our country’s fatally-flawed health care system, federal law is being used as a barrier to prevent states from taking action. While the Court’s ruling is deeply disappointing, its decision to roundly reject the claim by Wal-Mart’s lobbyists that the law singled out Wal-Mart was a positive sign.

Maryland’s Fair Share Health Care Law was approved in January when the state legislature overrode the veto of Gov. Robert Ehrlich (R). The law was due to go into effect Jan. 1, 2007. A top Wal-Mart executive stood by Ehrlich’s side at the veto ceremony last year.

The AFL-CIO’s Fair Share Health Care Campaign, joined by a coalition of union, community and health care groups, rallied public and political support for the Fair Share legislation.

The Fair Share Health Care Campaign has been active in more than 30 states, but Maryland was the first to pass the law.

The law was challenged by the Retail Industry Leaders Association, of which Wal-Mart is a member. Judge Frederick Motz of the U.S. District Court in Baltimore ruled in favor of the group’s claim, ruling the Maryland law violated federal law regulating employee benefits, according to the Associated Press.

We will bring you reactions and more details as they come in.

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