Association sues S.F. over health insurance mandate

Nation's Restaurant News,  Nov 27, 2006  

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SAN FRANCISCO -- A trade group representing more than 800 restaurants here sued the city to block its mandate for employer-provided health insurance, set to take effect next July. The Golden Gate Restaurant Association is urging the U.S. District Court to strike down a provision of a larger plan that was approved by the San Francisco Board of Supervisors last July in its effort to extend health insurance to more residents.

The disputed provision requires businesses with 20 or more employees to pay for health coverage. The trade group reportedly alleges that the measure contradicts federal employment regulations governing employee benefits and asserts that federal rules take precedence over state or local ordinances, precluding the mandate. The restaurant association's litigation also contends that the provision sets no cost controls and that many businesses would not be able to afford the mandatory benefit.

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