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 Health Care Reform   

     

Take Action! Send your Elected Official a Letter Urging their Support!  

 On March 23, 2010, President Obama signed into law the Patient Protection and Affordable Care Act. Implemented into this law is the employer mandate, which requires businesses with 50 or more full-time equivalent employees to provide health coverage to full-time employees and their dependents or pay tax penalties. The ACA currently defines a full-time employee as one working at least 30 hours per week. With the employer mandate set to take effect in 2015, franchise small business owners are examining their businesses to determine which employees they will need to offer coverage, or what their liability for a tax penalty might be. The flawed definition of "full-time employee" is problematic for franchise owners and their employees, and poses a threat to their economic viability. 

Employers and employees would both benefit from a traditional 40-hour definition of “full-time.” It would give employees greater flexibility in the hours they work, and also more closely align the ACA with the 40-hour provisions used for calculating overtime pay, thus eliminating the need to revamp longstanding employer personnel policies. 

There is currently legislation in both chambers of Congress that would repeal and replace the Affordable Care Act's 30-hour definition of full-time employee with the traditional definition of 40 hours per week. H.R. 2575, the Save American Workers Act, is sponsored by Rep. Todd Young (R-IN) in the House and H.R. 2988/S. 1188, the Forty Hours is Full Time Act, is sponsored by Rep. Dan Lipinski (D-IL) in the House and Sens. Susan Collins (R-ME) and Joe Donnelly (D-IN) in the Senate. 

Even though the employer mandate has been delayed, key ACA changes are still necessary to help franchise small business owners better comply with the law. A 40-hour-per-week definition of full-time employee will allow for more flexibility and pay for employees, a benefit many franchise businesses are able to provide for their workers. Defining a full-time employee as one who works 30 hours per week could ultimately hurt employees by forcing employers to manage their workers to fewer hours to avoid penalties or significant cost increases. 

We urge Congress to enact these legislative changes that will make this law more manageable for Main Street businesses. We have created this  issue toolkit webpage  to provide the latest information known about the Healthcare Law and its implementation. 

For more information, contact Robert Cresanti, Executive Vice President, Government Relations & Public Policy, rcresanti@franchise.org (202)-662-0768