Blue Cross & Blue Shield v. State Division of Human Rights
This decision vacates a previous order and remands the matter to the State Division of Human Rights for a hearing. The initial court had dismissed a complaint, finding New York's Human Rights Law pre-empted by ERISA regarding pregnancy disability benefits. The Court of Appeals remitted for reconsideration in light of Shaw v Delta Airlines, which clarified that pre-emption only applies when a state law prohibits practices lawful under federal law. The court noted that the discrimination, alleged in 1977, predated the federal prohibition against pregnancy discrimination (effective April 29, 1979). However, ERISA exempts plans maintained solely for complying with disability insurance laws. The record is unclear if petitioner's plan is a separate plan (where NY Human Rights Law would apply) or part of a larger employee benefit plan (where ERISA would control). Therefore, the case is remanded for a determination on this specific factual issue only.