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Friday, June 21, 2013

Who is Considered a Full-Time Employee Under the ACA?

A bi-partisan bill has been introduced in the Senate to address confusion over the definition of a full-time employee in the Affordable Care Act (ACA).  As currently written, the ACA defines a full-time employee as working 30 hours/week and beginning in 2014, employers with more than 50 full-time employees will be required to provide employees with health insurance or face a penalty.

Sens. Collins (R-ME) and Donnelly (D-IN) introduced the Forty Hours is Full Time Act of 2013 in order to change the definition of a full-time employee to working 40 hours/week.

According to Senator Collins, "The new health care law creates a perverse incentive for businesses to cut their employees' hours so they are no longer considered 'full time.'  If its definition of a full-time worker as someone who works only 30 hours a week is allowed to go into effect, millions of American workers could find their hours, and their earnings, reduced.  This simply doesn't make sense."

Learn more from Sen. Collins.