Election results and the Affordable Care Act – What can employers do now?

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With the recent presidential election results employers have had to redouble their efforts and focus on how to comply with the Affordable Care Act, and specifically, how to comply with the controversial provisions that will take effect in 2014. Many employers are wondering what they should be doing now to focus on compliance.

In this video, attorney Eric Athey, Co-Chair of the McNees Labor and Employment group, explains that most importantly See more +

With the recent presidential election results employers have had to redouble their efforts and focus on how to comply with the Affordable Care Act, and specifically, how to comply with the controversial provisions that will take effect in 2014. Many employers are wondering what they should be doing now to focus on compliance.

In this video, attorney Eric Athey, Co-Chair of the McNees Labor and Employment group, explains that most importantly employers analyze their workforce to determine an accurate count of full-time employees. The Act defines full-time employment status as an employee who regularly works 30 or more hours per week, and this becomes relevant for two reasons.

1) When the shared responsibility provisions take effect in 2014 they will only apply to large employers. Large employers are those who employ 50 or more full-time equivalents. Keep in mind that even if there are fewer than 50 full-timers, but they employ a significant number of part-time employees who could be considered full-time equivalents, the organization could still be categorized as a large employer, and therefore subjected to the shared responsibility provisions.

2) The second reason that full-time status is important is in determining penalties under the provisions. The IRS recently issued guidance known as Notice 2012-58 which addresses how to measure variable hourly employees or seasonal employees and whether they should be counted as full-time.

For more information on Healthcare Reform and related topics, visit and subscribe to our Labor and Employment Blog at: www.palaborandemploymentblog.com.

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Topics:  Affordable Care Act, Full-Time Employees

Published In: Health Updates, Labor & Employment Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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