Gov. Arnold Schwarzenegger has vetoed a bill that would have required large employers to spend up to 8 percent of their total payroll on health care.

The “California Fair Share Health Act” SB 1414, by Sen. Carole Migden, D-San Francisco would have required employers with at least 10,000 employees in the state to pay between 6 percent and 8 percent of their payroll on health care or pay an equivalent amount to a state-controlled fund.

Proponents dubbed the measure the “Wal-Mart” bill because of allegations that the superstore chain skimped on health care benefits for its workers, charges that Wal-Mart Stores Inc. had repeatedly denied.

However, Schwarzenegger sided with business opponents and in vetoing the measure said Wednesday that, “Singling out large employers and requiring them to spend an arbitrary amount on health care does nothing to lower costs or guarantee that even one more person has health care coverage.”

Schwarzenegger said he favors a “comprehensive and systemic approach” to health care reform and wants to work with legislative leaders to craft a reform package next year.