§ 4.3.6.5.5 THE FEDERAL SAVINGS CLAUSE

• Jurisdiction: Arizona

§ 4.3.6.5.5 The Federal Savings Clause. One significant limitation on ERISA preemption is that it applies solely and exclusively to state law. The federal savings clause provision prohibits construction of the ERISA preemption clause to alter, amend, modify, invalidate, impair, or supersede any law of the United States or any rule or regulation issued thereunder.¹¹⁷

Thus, ERISA itself does not provide a defense in bankruptcy proceedings or preempt provisions of the Bankruptcy Code.¹¹⁸ ERISA similarly will not provide a defense or preempt provisions of the National Labor Relations Act or the Railway Labor Act.¹¹⁹

One of the more significant issues under this exemption is the extent to which the federal savings clause will operate to protect certain state statutes from ERISA preemption. In Shaw,¹²⁰ the Court held that state employment discrimination statutes enjoy a limited exemption from ERISA preemption, but only to the extent that the protections offered under the state statute are co-extensive with the protections of Title VII.¹²¹ This shielding from ERISA preemption arises because Title VII contemplates enforcement through state statutes, and therefore preemption of the state statute would interfere with the enforcement of Title...