Legislation has been introduced in the Senate, the Forty Hours is Full-Time Act of 2013 (S. 1188), that would change the definition of full-time employee under the Affordable Care Act (ACA). Currently, the ACA defines a full-time employee as an employee who works 30 hours or more per week or 130 hours per month. The bill would increase these numbers to 40 hours per week or 174 hours per month.
During a news conference Senator Susan Collins, one of the sponsors of the bill, said: "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."
Collins and Senator Joe Donnelly co-authored a letter to President Obama urging his administration to provide employers transition relief beyond January 1, 2014, the effective date of the employer shared responsibility provisions, without incurring financial penalties.
XpertHR will continue to follow this bill and other key HR compliance issues.