Preempting ERISA Risks Turning Tennessee Into California

Sponsored Spotlight

Preempting ERISA Risks Turning Tennessee Into California

ROBERTSON COUNTY/MIDDLE TENNESSEE: (Smokey Barn News) – Tennessee lawmakers, it’s time to stop and think: Preempting ERISA, the federal law that protects employers from government overreach, is a dangerous move that could transform Tennessee into something unrecognizable.

Is the General Assembly prepared to make Tennessee look like California?

Well, take a hard look at what’s happening in bluest of blue states. California, Illinois, and Oregon have imposed state-mandated retirement programs, often called “auto-IRAs,” on their businesses. Programs like CalSavers force employers with as few as five employees to comply. Colorado, Maryland, and others have followed suit, automatically enrolling employees into state-controlled retirement plans, unless they actively opt out. The mandates are not about helping workers – they’re about government control.

By preempting ERISA, Tennessee opens the door to the very policies we’ve worked so hard to avoid. For the past 50 years, ERISA has served as a shield, ensuring businesses are free to make their own decisions without interference from state-level bureaucrats. Unlike these state mandates, ERISA doesn’t require any employer to establish a retirement plan. It simply provides standards for those that choose to do so. Dismantling this protection risks unleashing a flood of intrusive policies that would cripple Tennessee’s pro-business environment.

Our state is consistently ranked as one of the best states for businesses, constantly cited in outlets like CNBC and WalletHub. Why jeopardize that success? Imagine the impact of costly mandates on small businesses already struggling to manage rising healthcare costs, inflation, and the daily emergence of automation. Forcing employers to comply with state-controlled programs would drain resources better spent on growth, wages, and innovation.
But it’s not just the businesses that suffer. Families and workers bear the brunt of these misguided policies. Increased compliance costs mean fewer jobs, reduced wages, and higher prices across the board.

If lawmakers want to make Tennessee less competitive and more like California, which is hemorrhaging businesses by the day, this is the surest way to do it.

Don’t let Tennessee become the next cautionary tale.
The stakes are clear. Keep ERISA intact. Keep the government out of business. Above all, keep Tennessee, Tennessee.

Michael G. Curcio is the Chairman of the Tennessee Employer Benefits Alliance’s Board of Directors. For more information about TEBA’s work, visit www.tneba.org.

By Michael G. Curcio

Share your story

American families are struggling to afford the basics from food, gas and healthcare. As we work to ensure healthcare remains affordable and accessible for all Tennesseans, we want to hear how you are feeling the impact of rising prescription costs. Share your story

Mobile: To See The Latest Stories or to share this article, scroll below

Clicky