ERISA Preemption

ERISA applies to almost all disputes over employee benefits offered by private employers.  Any state law claims, such as breach of contract or bad faith, do not apply because the rules under ERISA “shall supersede any and all State laws insofar as they may now or hereafter relate to any employee benefit plan . . . .” 29 U.S.C. § 1144(a).

This means almost all employee benefit plans that provide health insurance, life insurance, long-term disability insurance, or similar benefits are governed by federal ERISA law; however, plans sponsored by governmental employers and churches are not usually governed by ERISA.  29 U.S.C. § 1004(b). If ERISA applies, most claims should be filed in federal court (except for claims that are limited to benefits over which state courts have concurrent jurisdiction), and if a plaintiff files a claim that is properly preempted by ERISA, the defendant may remove the claim to federal court without regard to the well-pled complaint rule (29 U.S.C. § 1132(e)); therefore, ERISA claims are rarely litigated in state court.