“Unlawful, unworkable” – NRF slams New Jersey ‘Fair Share’ law
The National Retail Federation (NRF) has led a consortium of employers to file a federal lawsuit challenging a recent New Jersey ‘Fair Share’ law.
The law seeks to impose a financial penalty/assessment on qualifying businesses if their workers rely on state-funded Medicaid rather than employer-provided health coverage. The NRF is concerned that this will make it more difficult for businesses in New Jersey to provide health care coverage to their employees.
“This law amounts to a penalty on employers that create jobs, provide health care coverage, and drive economic growth in New Jersey,” said David French, executive vice president of government relations of the NRF.
“Rather than working with the businesses and organizations that employ millions of people and support communities across the state to find constructive ways to provide health care to New Jersey workers, lawmakers rushed forward with a mandate that ignores federal law, imposes new penalties on employers and makes New Jersey a more difficult place to do business.”
The NRF cites the Employee Retirement Income Security Act (ERISA) of 1974 as being in direct conflict with NEw Jersey’s proposed new law. “Congress enacted [ERISA] to encourage employers to provide health care coverage under a uniform national framework,” the NRF said. “ERISA enables large employers to offer comprehensive, affordable coverage to employees across state lines without navigating a patchwork of conflicting state benefit mandates and reporting requirements.
“Allowing New Jersey’s law to stand would undermine the national framework protecting employee benefits that has been in place for more than 50 years,” it said.
“New Jersey’s new employer penalty legislation was rushed through without meaningful stakeholder engagement. The result is a law that is unlawful, wholly unworkable and administratively burdensome on New Jersey’s job creators.
