By Howard Fine
Gov. Arnold Schwarzenegger vetoed a bill that would have required large employers to spend up to 8% of their total payroll on healthcare.
The “California Fair Share Health Act”,SB 1414, by Sen. Carole Migden, D-San Francisco,would have required employers with at least 10,000 employees in the state to pay between 6% and 8% of their payroll on healthcare or pay an equivalent amount to a state fund.
Proponents dubbed the measure the “Wal-Mart” bill because of allegations that the superstore chain skimped on healthcare benefits for its workers, charges that Wal-Mart Stores Inc. had repeatedly denied.
Schwarzenegger sided with business opponents in vetoing the measure.
“Singling out large employers and requiring them to spend an arbitrary amount on healthcare does nothing to lower costs or guarantee that even one more person has health care coverage,” he said.
Schwarzenegger said he favors a “comprehensive and systemic approach” to healthcare reform and wants to work with legislative leaders to craft a reform package next year.
Fine is a staff writer with the Los Angeles Business Journal.
