Supreme Court seeks government’s input on Seattle hotel worker insurance law

A lodge worker protests outdoors airport hotels to need health care coverage extension.., REUTERS/Lucy Nicholson

(Reuters) – The U.S. Supreme Court docket on Tuesday requested the Biden administration to weigh in on whether or not a Seattle ordinance necessitating motels to offer you well being insurance policy to very low-wage personnel is prohibited beneath the federal regulation regulating worker gains.

The courtroom invited U.S. Solicitor Typical Elizabeth Prelogar to file a brief in a bid by the ERISA Sector Committee (ERIC), a business group, to revive its challenge to the 2019 regulation, which requires larger resort operators to supply up to $1,375 a month in insurance policies rewards or immediate payments to staff.

Annette Guarisco Fildes, president and CEO of ERIC, reported in a statement that the group was inspired by the court’s request for the federal government to stage in. She mentioned the federal governing administration has in the past suggested that equivalent regional legislation are invalid.

The Seattle City Attorney’s Place of work did not straight away react to a ask for for comment.

The 9th U.S. Circuit Courtroom of Appeals last year turned down the group’s assert that the town regulation was barred by the federal Staff Retirement Profits Security Act of 1974 (ERISA), which preempts condition guidelines that attempt to regulate employee advantage options.

The 9th Circuit, agreeing with a federal decide in Seattle, reported the city’s regulation does not have to have companies to build new plans or amend current types, and consequently was not barred by ERISA.

In a January petition, ERIC explained to the Supreme Court that the 9th Circuit experienced adopted far too narrow a check out of ERISA. The federal regulation was intended to build uniform nationwide criteria for employee profit ideas to comply with, and the Seattle legislation would upset that plan by demanding particular remedy for personnel in a one industry in one city, the group reported.

ERIC is backed by a lot of enterprise groups which include the U.S. Chamber of Commerce, National Federation of Independent Small business, and the American Resort and Lodging Affiliation.

The situation is ERISA Business Committee v. Town of Seattle, U.S. Supreme Court docket, No. 21-1019.

For the ERISA Sector Committee: Paul Clement of Kirkland & Ellis

For Seattle: Peter Stris of Stris & Maher Jeremiah MIller of the Seattle City Attorney’s Business office

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