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IFA joined a coalition of business groups in filing suit in the U.S. District Court for the District of New Jersey challenging New Jersey’s recently enacted Employer Healthcare Assistance Contributions Act (A5324), which may ensnare franchisees to make payments to the state’s Medicaid program.
Why It Matters: IFA’s challenge is based on whether a state may use a Medicaid assessment to pressure employers into redesigning benefit plans that Congress placed under a single federal framework (i.e., ERISA).
What's Next: IFA’s suit is timely because New Jersey's first assessment to businesses is scheduled for December 31, 2026, with notices to be sent to employers by March 1 and payment due by April 15, 2027.
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