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
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, email@example.com (202)-662-0768