The Supreme Court of the United States (SCOTUS) Monday denied a petition concerning federal preemption of a local law requiring employee health benefits. The petition was brought by the ERISA Industry Committee (ERIC) against the City of Seattle over an ordinance requiring large hotel chains to give their employees $1,375 a month in insurance benefits or in direct payments.

The Supreme Court denied the petition for certiorari after consultation with the Department of Justice (DOJ). The court’s denial of certiorari was supported by the Biden administration, which argued that the Seattle law was not preempted because of the option for employers to make direct cash payments to workers instead of setting up new benefit plans. The denial paves the way for local laws regarding worker healthcare benefits to be enacted and upheld nationwide, thus increasing worker rights and well-being.

ERIC contends that upholding the Seattle law allows for an inconsistent patchwork of local laws to govern employment law nationwide. They claim this local law prevents large employers from instituting uniform, consistent health care policies and argues that employers should not have to specify their benefit plans based on what local law dictates.

ERIC is a nonprofit organization based in Washington D.C. which represents large employers nationwide. The group filed a federal suit in 2020 arguing that Seattle’s ordinance was barred by the federal Employee Retirement Income Security Act of 1974 (ERISA), which preempts local laws attempting to regulate employee benefit plans. The suit was thrown out at the trial court level, and ERIC appealed the case to the Ninth Circuit Court of Appeals. The appellate court ruled the local ordinance was not preempted by federal law, and ERIC petitioned for certiorari at the Supreme Court in January.