On June 26, the U.S. District Court for the Northern District of California granted a motion to dismiss by the City of Oakland and intervenor Unite Here Local 2850 in a case brought by the California Hotels & Lodging Association challenging Measure Z, a voter-approved Oakland ordinance that sets minimum wage requirements and reduces room-cleaning workloads for hotel employees. The Association claimed that Measure Z is preempted by ERISA as well as the California Occupational Safety and Health Act of 1973, and that it is unconstitutionally vague under both the California and U.S. Constitutions. Judge Orrick rejected all of these claims. He held that Measure Z is not preempted by ERISA because employers can comply with it by paying employees $20 per hour without providing health benefits – thus, it does not require any employer to provide health benefits or to change any existing benefit plan.
Feinberg, Jackson, Worthman & Wasow LLP represents the City of Oakland in connection with the Association’s ERISA preemption challenge to Measure Z. Coverage of the case by Employment Law 360 is available here. If you have any questions about the case, please contact Nina Wasow or Catha Worthman.