The ERISA Industry Committee (ERIC) is encouraged by the U.S. Supreme Court’s decision to further consider its cert petition and legal challenge to the City of Seattle’s onerous “play-or-pay” health care mandate – Municipal Code (SMC) 14.28 – on federal ERISA preemption grounds.
In an order list released on May 31, the Court invited the U.S. Solicitor General to develop and file a brief expressing the views of the United States on the legal issues presented by ERIC’s case.
“As ERIC’s cert petition and reply brief made clear, this area of federal ERISA law has received divergent decisions by the First, Fourth, and Ninth Circuits, creating a federal split that must not be allowed to persist,” said Annette Guarisco Fildes, president and CEO of ERIC. “Notably, the federal government has previously suggested that state and local “play-or-pay” mandates are incompatible with ERISA. ERIC will therefore continue to place focus on the legal merits of our challenge, defend the foundation of ERISA preemption, and protect the critical benefits that it makes possible for millions of Americans.”
ERIC initially filed its challenge to Seattle’s health care ordinance in 2020. The core of ERIC’s complaint was rooted in the Employee Retirement Income Security Act of 1974’s (ERISA) preemption of state and local laws controlling the design or administration of specific employee benefit plans.
On January 14, 2022, ERIC petitioned the U.S. Supreme Court to review the U.S. Court of Appeals for the Ninth Circuit decision dismissing ERIC’s challenge to a Seattle health coverage mandate, Municipal Code (SMC) 14.28. ERIC’s petition focused on three arguments for review: Seattle’s ordinance regulates ERISA plans and is therefore preempted by federal law; Circuit court decisions on ERISA preemption are conflicting and must be reconciled; and, as more states and localities plan to impose similar benefit mandates, an immediate resolution is needed.
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