FEW EMPLOYERS CUTTING HOURS TO AVOID ACA FINES

The ACA’s employer shared responsibility rules define a full-time employee as one who has an average of 30 or more hours of service a week. Beginning as early as Jan. 1, 2015, applicable large employers must provide full-time employees and their dependents with affordable, minimum-value health insurance or risk having to pay a penalty.

It was feared that many employers might reduce employees’ hours in order to lessen the impact of the ACA’s employer mandate penalties. However, a recent survey by the Society for Human Resource Management (SHRM) demonstrates that the majority of employers have not reduced hours as a result of the ACA’s mandate.

Specifically, the survey shows that 14 percent of organizations have reduced part-time hours and 6 percent plan to reduce hours. Another 8 percent of employers considered reducing part-time hours but decided against it.

SHRM shares that about 19 percent of employees were affected by reduction or planned reduction in part-time hours.


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