Congress Evaluating the Employer Mandate’s Definition of a Full-Time Worker
By: Christina Merhar (Zane Benefits) January 2015
One of the big Affordable Care Act headlines this week is whether the definition of a full-time worker will be changed from 30 hours a week to 40 hours a week.Congress Evaluating the Employer Mandate’s Definition of a Full Time Worker.
Last Thursday, the House of Representatives passed legislation that would change the law’s definition of full-time work to 40 hours a week. If passed by the Senate and signed into law, this would reduce the number of workers to whom employers would have to offer health insurance under the law’s employer mandate. Here’s what you need to know about the headlines, and the legislation.
H.R. 30 Would Change the Definition of a Full-Time Worker from 30 Hours to 40 Hours
On Thursday, January 8th, the House of Representatives passed H.R. 30. The bill amends the Internal Revenue Code to change the definition of a “full-time employee,” for purposes of the Affordable Care Act’s employer mandate.
Under the employer mandate, applicable large employers (with more than 50 FTE employees) are required to offer health insurance coverage to full time workers, as defined by working on average at least 30 hours of service in a week.
Supporters of the legislation argue that by requiring companies to offer health insurance coverage to employees working 30 or more hours, there is an incentive for employers to reduce workers’ hours to below 30 per week. If workers are not considered full time employees, employers can avoid providing health coverage or avoid paying a fine.
The measure passed 252-172 in the House of Representatives Thursday and now moves to the Senate. The White House has said if the bill reaches President Obama’s desk, he will veto it.
Last spring similar legislation was introduced, but stalled in the Senate.
About the Employer Mandate
The ACA’s employer mandate (also called the Employer Shared Responsibility Fee) begins in 2015 for employers with 50 or more full-time equivalent workers. This year, however, is a phase-in year as there is some transitional relief for employers in 2015.
For 2015, if an employer with at least 50 full-time employees (including full-time equivalents) does not offer “minimum essential” and “affordable” coverage — or offers coverage to fewer than 70% of its full-time employees (and their dependents) — the employer will owe an Employer Shared Responsibility fee IF one of their employees purchases a health plan through the exchanges and receives a federal tax credit or subsidy.
Categories
- Benefits Resources
- Bonding
- BOP
- Business Insurance
- Commercial Auto
- Commercial Property
- Company News
- Construction
- Crime Insurance
- Cyber Insurance
- Directors & Officers
- Employee Benefits
- Employment Practice Liability Insurance
- Entertainment
- General Liability
- Health Insurance
- Healthcare
- Healthcare Reform
- Homeowners Insurance
- Hospitality
- Manufacturing
- Medical Malpractice
- Mining & Energy
- Nightclubs
- Personal Auto
- Personal Insurance
- Professional
- Restaurants
- Retail & Wholesale
- Risk Management Resources
- Safety Topics
- SBA Bonds
- Security
- Seminars
- Technology
- Tourism
- Transportation
- Uncategorized
- Workers Compensation
Archives
- May 2021
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- November 2018
- September 2018
- August 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- February 2013
- November 2011
- October 2011
- September 2011
- July 2011
- June 2011
- March 2011
- November 2010
- October 2010
- September 2010
- April 2010
- February 2010
- November 2009
- October 2009
- November 2008
- August 2008