Skillin v. Rady Children's Hospital-San Diego
Annotate this CaseDavid Skillin brought a Private Attorneys General Act lawsuit against his former employer Rady Children's Hospital of San Diego (Rady) for alleged violations of the California Labor Code. Skillin claimed Rady made unauthorized payroll deductions from his wages, resulting in higher than desired contributions to his retirement plan. He also claimed Rady issued inaccurate wage statements by failing to show the amounts deducted for retirement "on written orders of the employee." The trial court granted summary judgment in Rady's favor, concluding Skillin's claims were preempted by the Employee Retirement Income Security Act of 1974 (ERISA). The court found preemption under ERISA section 514(a); it did not, however, find preemption under ERISA section 514(e), which applied to state laws that "directly or indirectly prohibit or restrict the inclusion in any plan of an automatic contribution arrangement." The Court of Appeal affirmed, finding Skillin's claims were preempted under subdivision (a) of section 514 and plainly preempted under subdivision (e) of that same section.
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