For Immediate Release

February 8, 2006

LANSING — The Michigan Retailers Association (MRA) today applauded legal challenges filed by the Retail Industry Leaders Association (RILA) seeking to overturn health-spending mandates enacted in Maryland and Suffolk County, New York.

The mandates target specific companies and require them to pay a special health care payroll assessment. Similar legislation, such as Senate Bill 734, has been introduced in the Michigan Legislature.

"This type of legislation is the result of a nationwide union campaign that will drive away business and discourage job creation in Michigan," said Larry Meyer, MRA chairman and CEO.

"Our membership, like RILA’s, understands that while these union-backed health-spending laws are written to target certain companies, they impact the entire retail industry, robbing each company of the flexibility it needs to meet the unique needs of its workforce."

RILA’s lawsuits were filed in federal courts in Baltimore and Brooklyn. They assert that state and local laws regulating employee health benefit plans are invalidated by federal law, specifically the Employee Retirement Income Security Act (ERISA). MRA and RILA said fixing the health care system is a national issue that requires a national approach.

"Our members are committed to this litigation," said RILA President Sandy Kennedy. "The spending mandates that we are challenging are unlawful and unwise, and divert focus and resources away from real solutions."

Copies of RILA’s lawsuits, as well as information about the litigation can be found at www.retail-leaders.org.

Contact:
Eric Rule
517.372.5656
errule@retailers.com