Retail Group Sues Over Wal-Mart Law

A retail trade association filed suit challenging a Maryland law designed to pressure Wal-Mart Stores Inc. to spend more money on employee healthcare.

The law, the first of its kind in the nation, was enacted in January. It requires companies with more than 10,000 employees in Maryland to spend at least 8% of payroll on healthcare or contribute the difference to the state Medicaid fund.

The Retail Industry Leaders Assn., which also filed a lawsuit challenging a healthcare law passed in New York's Suffolk County, said the two laws illegally mandated specific healthcare expenditures and threatened to take away flexibility that businesses needed to deal with their employees.