The San Francisco Health Care Security Ordinance which mandated certain larger private employers and nonprofit corporations to make minimum levels of health care expenditures was held to be preempted by ERISA.
In this case, Golden Gate Restaurant Association challenged certain provisions of the newly enacted San Francisco Health Care Security Ordinance, contending that they are preempted by the federal Employee Retirement Income Security Act of 1974 (?ERISA?). Part of the ordinance was scheduled to go into effect on January 1, 2008. The ordinance mandated minimum levels of health care expenditures by private employers with at least 20 employees and nonprofit corporations with at least 50 employees.
The district court held that the ordinance is preempted by ERISA, and enjoined implementation and enforcement of the ordinance. Two weeks later, the Ninth Circuit Court of Appeals concluded that the City has a probability of success in arguing that the ordinance is not preempted by ERISA. Thus, it ordered the district court?s judgment be stayed pending resolution of the City?s appeal.

Golden Gate Rest. Ass?n v. City & County of San Francisco, 2008 WL 90078 (9th Cir. Jan. 9, 2008)

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