Which of the following areas of state regulation is NOT protected by the savings clause in ERISA?

The rationale for the correctness of the answer centers on the function of the Employee Retirement Income Security Act (ERISA) and the concept of the savings clause. The savings clause in ERISA essentially allows states to regulate certain aspects of employee benefit plans, particularly those related to insurance, health care, and pensions.

Insurance regulations fall under this clause because states have a long-standing role in overseeing insurance companies and protecting policyholders. Similarly, health care regulations are also preserved under this clause, allowing states to manage health care providers and patient rights in the context of employee benefits. Pension plans, while largely governed by federal law, also include state regulatory provisions through the savings clause.

Commerce, on the other hand, is not similarly protected by the savings clause. ERISA intends to maintain a cohesive federal regulatory framework for employee benefit plans, particularly in commerce-related areas, to avoid conflicting state laws that could create confusion or hinder the flow of business. Therefore, the state regulation of commerce is entirely subject to federal oversight without the protections afforded by the savings clause. This difference delineates areas where states retain regulatory power versus those that are dominated by federal law.