Maryland vote requires Wal-Mart health benefits

Maryland lawmakers Thursday bucked the will of the state’s Republican governor and the nation’s largest retailer, voting to become the first state to effectively require that Wal-Mart spend more on employee health care.

In a veto reversal that was closely watched nationally, lawmakers in the Democrat-led General Assembly in Annapolis, Md., voted largely along party lines for a measure that legislatures in more than 30 states are considering replicating.

“Maryland is not a shrinking violet, no, far from it,” said Sen. Gloria Lawlah, D-Prince George’s, a lead sponsor of the legislation, which drew strong backing from labor unions and health care advocates. “Maryland is a leader. Let us light the torch today. Let us lead.”

The Senate voted 30-17 for the bill after a filibuster attempt by Republicans. The House followed Thursday night with a 88-50 vote that handed Republican Gov. Robert L. Ehrlich Jr. a defeat on a bill he argues is an unwarranted government intrusion into business.

The bill will require private companies with more than 10,000 employees in Maryland to spend at least 8 percent of their payroll on employee health benefits or make a contribution to the state’s insurance program for the poor. Wal-Mart, which employs about 17,000 Marylanders, is the only known company of such size that does not meet that spending requirement.

Wal-Mart spokesman Nate Hurst said the votes were driven by “partisan politics.”

Hurst said the company’s lawyers were certain to look into questions raised by business groups about whether the bill violates federal law. The Maryland Attorney General’s Office issued an opinion this week dismissing those concerns.

The legislation has resonated in Maryland and beyond in part because it is viewed as a relatively easy and inexpensive way for lawmakers to expand access to health care and because Wal-Mart, a company with a reputation for stingy benefits, is considered an easy target.