Health Care Reform
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.
more information, contact Jay Perron, Vice President of Government
Relations and Public Policy at email@example.com or (202)662-0797