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California Employers may need to Fork out more on Health Benefits

California: Big time employers in California will need to cough up more towards health benefits for their workers or else spruce up the state’s medical // insurance program for the needy, according to the recent communiqué. A bill portraying these sentiments is slated for introduction in the parliament.

Wal-Mart, the retail giant, was recently subjected to a similar legislation passed in Maryland and now it is the turn of the California laws intended for employers with a work force of 10,000 or more, to spend at least 8% of wages on health benefits. In the event of not complying with such a decree, the company will be required to compensate Medi-cal with the difference.

According to Sen. Carole Migden, proponent of the bill, this move would prove a protection cover for employees whilst also ensuring that the employer discharges his responsibility. Like most other bills, this too faces enough opposition. Wal-Mart has labeled this as a mediated attack against a well known networked retailer with a collective workforce of more than 1.3 million. Kelly Hobbs, a spokesperson for the retailer, feels that this is a politically motivated conspired move by the union leaders to stagger Wal-Marts growth.


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