ERISA Preemption

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This week’s notable decision is an unpublished ERISA preemption decision in Abernethy v. EmblemHealth, Inc., No. 19-422, __F.App’x__, 2019 WL 5302825 (2d Cir. Oct. 21, 2019), where the Second Circuit revived the state law claims retired officers brought against EmblemHealth after they cancelled the officers’ retiree medical coverage.

The retirees claimed that they were entitled to continued medical coverage based on their employment and separation agreements.  The employment agreements provide that the employee “shall be entitled to participate in, and receive benefits under” any retiree health benefit plan provided by EmblemHealth, “subject to the terms of such plans, program or policies.” But, the agreement also disclaims that the employee has any vested interest in any employee benefit plan, which the company may, in its discretion, change or revoke.  The separation agreements state that the employee will be able to “commence Retiree Health Benefits at the same level as that provided an active officer.”
Continue Reading Second Circuit Holds Breach of Contract Claims for Retiree Medical Coverage Not Preempted by ERISA

This week’s notable decision is Rudel v. Hawai’i Management Alliance Association, No. 17-17395, __F.3d__, 2019 WL 4302895 (9th Cir. Sept. 11, 2019), where the Ninth Circuit made three significant determinations with respect to ERISA preemption of state laws regulating insurance.  The first is that ERISA § 502(a) completely preempts two Hawai‘i Statutes prohibiting insurers from seeking reimbursement for general damages from third-party settlements, which allowed the case to be removed to federal court.  Second, the Hawai‘i Statutes are saved from preemption pursuant to ERISA § 514.  Lastly, the Hawai‘i Statutes provide the rule of decision for the restated federal ERISA action.
Continue Reading Ninth Circuit Holds that Hawaii Statutes Restricting Insurers’ Subrogation Recovery Rights Are Saved from ERISA Preemption

Hello, ERISA Watchers!  Since Wednesday’s mid-week report, there were not any more exciting circuit court decisions.  Today, I want to highlight a preemption decision out of my backyard in California Hotels and Lodging Association v. The City of Oakland, No. 19-CV-01232-WHO, 2019 WL 2617057 (N.D. Cal. June 26, 2019).  In November 2018, Oakland voters passed Measure Z which asked:

Shall the measure amending Oakland’s Municipal Code to: (1) establish workplace protections and minimum hourly wage of $15 with benefits or $20 without benefits, increasing annually with inflation, for employees of Oakland hotels with 50 or more guest rooms; (2) authorize administrative enforcement standards for hotel and non-hotel workers; and (3) create City department to administratively enforce Oakland’s employment standards for hotel and non-hotel workers, be adopted?
Continue Reading Court Finds that Wage/Benefit Ordinance for Hotel Workers Is Not Preempted by ERISA