January 13, 2006 8:30 AM, EST

Maryland Law Requires Wal-Mart to Boost Health-Care Spending

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aryland has become the first state to require retail giant Wal-Mart to spend more on employee health care, or to pay the difference into the state's Medicaid fund, news reports said.

Maryland's Democratic-controlled state legislature on Thursday overrode a veto by Gov. Robert Ehrlich (R) to enact the law, the Associated Press reported. Similar laws may be coming to other states, AP said.

Opponents of the legislation called it a precedent that ultimately would cost jobs, AP said.

Wal-Mart is ranked No. 2 on the Transport Topics Private 100 listing of North American private fleets.

The measure requires companies with more than 10,000 employees in the state to spend at least 8% of their payroll on employee health care or pay the difference into the state-supported Medicaid program.

Of the state's large employers, only Wal-Mart spends less than 8% on health care, AP reported.

Labor unions, who heavily pushed for the bill, said they would pursue similar legislation in at least 30 other states, focusing first on Colorado, Connecticut and Washington, AP said.