House Moves to Block State and Local Savings Arrangements for Private Employees

ERISA Preemption and State Laws

This week, the House passed resolutions under the Congressional Review Act disapproving two Department of Labor rules that would allow states, cities and countries to establish retirement plans that automatically enroll private sector employees who do not have such plans.  The DOL rules effectively created a "safe harbor" under ERISA by asserting such state and local plans are not subject to the law’s requirements.  If approved by the Senate, H.J. Resolution 66, sponsored by Rep. Tim Walberg (R-MI), would block the safe harbor created for states, while H.J. Resolution 67, sponsored by Rep. Tom Rooney (R-FL), would similarly block the safe harbor extended to cities and counties.  Given the resolutions would be passed under the Congressional Review Act, they would prevent future administrations from promulgating similar regulations.