The U.S. Supreme Court on Monday turned away a challenge to a 2018 Seattle law requiring hotels to pay for health insurance for low-wage workers pursued by a business group that argued the measure violated a federal law that regulates employee benefits.
The justices declined to hear an appeal by a group called the ERISA Industry Committee of a lower court's ruling that upheld the law. Their decision not to take up the challenge could encourage other cities and states to adopt similar requirements intended to address the widespread lack of health insurance among low-wage employees.
ERIC is a nonprofit organization based in the U.S. capital representing large employers in their capacity as sponsors of employee benefit plans for their nationwide workforces. A federal judge threw out the case. The San Francisco-based 9th U.S. Circuit Court of Appeals last year upheld the judge's decision, finding that the law does not require employers to create new plans or amend existing ones, thus is not barred by ERISA.
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