Federal Legislation Raises the Definition of Full-Time Workweek

Last week, the U.S House of Representatives passed the Save American Workers Act on April 3, 2014, by a vote of 248 to 179, thought it is unlikely it will be brought to a vote in the Senate.  Some believe that will mean the workweek issue could be a factor in November's congressional elections.

The legislation would raise the definition of a full-time workweek in the Patient Protection and Affordable Care Act (PPACA or ACA) from at least 30 hours to 40 hours per week. Under the ACA, full-time employees are entitled to employer-provided health coverage (at organizations with 50 or more full-time employees or equivalent workers). For calculating employee hours, the ACA provides the option of a "look-back" period that can be three to 12 months to determine if an employee has full-time status and is eligible for health care coverage.

For employers with 100 or more full-time employees, coverage must be provided to full-time employees beginning in 2015; for employers with 50 to 99 workers, the coverage mandate begins in 2016. 

Traditionally, employers have classified as full time those who work a minimum of 40 hours per week. Some Critics say the 30-hour threshold contained in the health care law’s “employer mandate” will harm workers in the food service industry and other sectors because it incentivizes employers to slash hours and avoid the costs of providing health coverage. In introducing the bill, chief sponsor Rep. Todd Young, R-Ind., noted that many employers are reducing the hours of part-time workers to less than 30 per week to avoid the coverage mandate for these employees.

"Many of our hourly workers are experiencing a drop in the number of hours and wages that they enjoy of as much as 25 percent," Young said. "These are cafeteria workers, these are substitute teachers, these are adjunct professors. … On balance, these are folks who can least afford to see a cut in their take-home pay. And so we want to restore the 40-hour workweek."

If you have any questions about the new legislation, attend a Chamber Government Affairs Committee meeting to join in the discussion about issues impacting business.  The monthly meetings are held at the Chamber office on the first Tuesday of every month.  The next meeting is scheduled for May 6th, 7:30am.