Can High Medical Bills Cost You Your Job?

In an article in today’s Chicago Tribune, our colleague Paul Secunda suggests that the risks of this happening are higher in the current economic climate.  The article concerns a federal lawsuit in which the plaintiff alleges she was fired because of her husband’s medical bills, which were covered through her employer’s medical plan.  The Seventh Circuit recently reversed the trial court’s dismissal of her claim.  Federal law, of course, generally prohibits employment actions that discriminate on the basis of disability, which may provide a legal foundation for some claims like those of the plaintiff in the Seventh Circuit case.

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Hills on Local Democracy and ERISA Preemption

Hills Rick Hills (NYU), one of the more thought-provoking and provocative thinkers over at PrawfsBlawg, has an interesting post on the interaction between the democratic process and the law of ERISA preemption.

His post takes off from the recent ERISA preemption case of Golden Gate Restaurant Association, in which the Ninth Circuit recently held that a San Francisco ordinance demanding employers provide health benefits is not preempted by ERISA.  This holding is contrary to many of the cases in this area (and critiqued by ERISA luminaries like Ed Zelinsky) and the case is currently being considered for en banc review.

Here’s a taste of Rick’s insights:

San Francisco is now locked in a struggle with business over whether subnational governments can mandate that employers provide their employees with health care benefits. The employers are claiming that ERISA preempts the mandate, and their argument illustrates the insidiously anti-democratic nature of preemption arguments. As a matter of policy, I tend to agree that funding public benefits like health care through mandates on employers is foolish. Such a finance mechanism interferes with the mobility of labor and discourages job creation. Far better, it seems to me, to provide health benefits through general taxes not incident on employment.

But here is where I am a die-hard lover of federalism: As dumb as employer mandates are, centralizing debate over health care through a broad construction of ERISA preemption is even dumber.

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Milwaukee Third Municipality to Pass Paid Sick Leave Ordinance

Medicalcare This past Tuesday, the voters of the City of Milwaukee overwhelmingly (68%) approved the sick pay ordinance. Under this ordinance, private employers in Milwaukee must provide paid sick leave to workers, who earn the benefit at the rate of one hour of sick pay for every thirty hours of work.

The Milwaukee Journal-Sentinel reports:

Employers would have to grant 72 hours of sick leave per calendar year or 40 hours if they have fewer than 10 employees.

Although the ordinance is due to take effect in about 100 days, the Metropolitan Milwaukee Association of Commerce has filed notice that it intends to legally challenge the law on the grounds that (1) it is inconsistent with federal and state laws for family and medical leave; and (2) oversteps the city’s authority to require sick pay from employers outside the city that have employees living in Milwaukee.

I am no expert on the second issue, but the first ground of challenge seems utterly without merit.  The federal FMLA and state leave law provide a floor under which no law may go, but states and municipalities have always been free to be more generous, and, in this case, provide some paid leave to workers.  The fact that the business group believes the ordinance will cause them economic harm is not grounds for setting the ordinance aside.

I am hopeful that the court deals quickly with this matter so that the ordinance can go into effect when scheduled and start providing much-needed relief for the workers of Milwaukee when they become sick.

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