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
Court Finds that Wage/Benefit Ordinance for Hotel Workers Is Not Preempted by ERISA
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
Court Holds that Brooklyn Public Library Disability Plan is Not Subject to ERISA Governmental Plan Exemption
Hello, ERISA Watchers! Getting this out a day early so I could wish you all a Happy Passover, Easter, and Sunday! This was another relatively slow week for ERISA decisions. I expect it to pick back up over the next few weeks.
This week’s notable decision is Skornick v. Principal Financial Group, et al., No. 18-CV-4324 (CS), 2019 WL 1723741 (S.D.N.Y. Apr. 18, 2019), where the court determined that a group disability benefit policy purchased through Defendant Brooklyn Public Library (“the Library”) is subject to ERISA because it does not meet ERISA’s governmental plan exemption.
Continue Reading Court Holds that Brooklyn Public Library Disability Plan is Not Subject to ERISA Governmental Plan Exemption