IFA Praises Efforts by House Ways & Means Committee to Fix Definition of Full Time in ACA

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FOR IMMEDIATE RELEASE


Contact:

Matthew Haller, 202-662-0770

Jenna Weisbord, 202-662-0766

mhaller@franchise.org

jweisbord@franchise.org


IFA PRAISES EFFORTS BY HOUSE WAYS & MEANS COMMITTEE TO FIX DEFINITION OF FULL TIME IN ACA


WASHINGTON, Feb. 4, 2014—The International Franchise Association applauded the House Ways & Means Committee following today’s markup of H.R. 2575, The Save American Workers Act , sponsored by Rep. Young (R-Ind.), which would define full time as 40 hours instead of 30 hours currently in the Affordable Care Act.


“We truly appreciate the House Ways & Means committee moving forward to provide much-needed relief to small business owners and their employees regarding the definition of a full-time worker,” said IFA President & CEO Steve Caldeira. “By defining full time as the traditional 40 hours, employers and employees will have more flexibility on schedules and hours, thereby avoiding the most burdensome aspect of the employer mandate, while leaving the structure of the law intact.”


Since the law was passed, IFA has worked diligently to educate lawmakers that the definition of a full-time employee under the ACA is unworkable for franchise owners who work across various industries, including restaurants, retail, lodging and service-related businesses.


“Addressing the problem is a step in the right direction and we will continue to work with the committee, as well as both the House and Senate in a bipartisan manner, to ensure relief is provided for small business owners and their employees,” said Caldeira.


To support the need for the change in the definition, IFA and the U.S Chamber of Commerce commissioned research by Public Opinion Strategies survey that shows 64 percent of business decision makers in franchise-owned businesses and 53 percent in non ‐ franchisee owned businesses believe the ACA will have a negative impact on their businesses. Moreover, 31 percent of franchise and 12 percent of non ‐ franchise businesses have already reduced worker hours, a full year before the employer mandate goes into effect.


Further, the Congressional Budget Office projected today that overall the ACA will reduce full-time jobs by 2.0 million in 2017 and 2.5 million by 2024. Relief on the employer mandate is potential tool for mitigating the full impact of the ACA, while still leaving the core of the law intact.


To view IFA’s letter of support for The Save American Workers Act , please click here .


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About the International Franchise Association

The International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. Celebrating over 50 years of excellence, education and advocacy, IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the more than 825,000 franchise establishments, which support nearly 18 million jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.



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