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MORE TIME FOR FULL TIME

RESTORING THE 40-HOUR WORK WEEK,  SAVING AMERICAN WORKERS

The Affordable Care Act (ACA) inclu...
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More Time for Full Time

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The ripple effect of the Affordable Care Act (ACA) redefining full-time employment as 30 hours per week – not 40 – is already adding up.

Due to rising costs, many employers working to comply with this new definition under the employer mandate have already had to restructure their workforces. This means that employers are not able to focus on growth and employees must struggle with fewer hours and lower wages.

Published in: Healthcare
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More Time for Full Time

  1. 1. O MORE TIME FOR FULL TIME RESTORING THE 40-HOUR WORK WEEK, SAVING AMERICAN WORKERS The Affordable Care Act (ACA) includes a provision that defines full time as an employee working 30 hours per week. This stands in contrast to the traditional understanding of full time, 40 hours per week, and could force employers to reduce available hours to many workers to stay below the threshold. harming businesses and employees alike. But what are the real costs of redefining this benchmark? THE PRICE OF ADMISSION Firms that employ 50 or more full-time equivalent employees must provide affordable minimum value coverage to all full-time employees (and dependents) or potentially face penalties. S A business that grows from 49 to 50 $ 4 0 I O O 0 employees could face penalties totaling PENALTY PER YEAR $40,000 per year S 3 ’ O O 0 Employers who don't offer affordable minimum value coverage to all full-time workers could pay up to $3.000 per employee PENALTY PER EMPLOYEE $2.70 PER H OUR Average cost to provide employee health benefits S I 6 1 3 5 AI Average cost of an employee family plan PER YEAR COST #1 Under the new policies, employers face additional costs for employees who were previously considered part-time. Companies that can't absorb these costs may have to reduce employee hours or reduce their workforce. THE BILL COMES DUE Many employers are already reducing employee hours in advance of ACA mandates. In addition, employees who have had their hours out receive less in direct compensation, meaning less income for them and less tax revenue for our country. How is the 30-hour work week impacting business growth? oooo ooooo n ooooo $24.6 BILLION 2.3 MILLION I. OST TAX REVENUE WORKERS AT RISK FOR (20l5-2025) (9 ® ® ® ® REDUCED HOURS 21% 41% 27% Percentage of businesses that Percentage of small business Percentage of franchise have already made reductions owners that have delayed businesses that have to employee hours in response hiring due to uncertainty replaced full-time workers to ACA mandates about ACA with part-time workers COST #2 Redefining the full-tirne threshold at 30 hours per week is introducing new expenses to businesses and preventing employers from focusing on growth. Faced with this, they may have to restructure their workforce to mitigate costs. THE COST OF COMPLIANCE Because the ACA redefines full-time employment, it limits employment opportunities for people searching for flexible jobs. Who are these workers? OF THOSE MOST AT RISK FOR LOST HOURS: 8 9 % 6 3 % DO NOT HAVE A COLLEGE ARE BETWEEN THE AGES ARE WOMEN DEGREE OF l9 AND 34 This particularly affects industries with a large percentage of part-time and flex workers, such as the restaurant and retail industries. ACCOMMODATION RESTAURANTS RETAIL NURSING HOMES s 5 909,000 3,835,000 9,506,000 l,354,000 (7.7% OF WORKERS) Il5.4% OF WORKERS) (6.3% OF WORKERS) (7.6% OF WORKERS) COST #3 Without the option of working additional hours, many employees may have to get a second part-time job to earn the same amount in wages. Employers and their clients face disrupted continuity of service, and businesses must spend time and money to recruit and train new workers. LET'S GET OUR RULES RIGHT TELL CONGRESS TO SUPPORT A 40-HOUR WORK WEEK. LEARN MORE AT / .. . _ET‘S GET OUR‘. { K‘. For a full Izst or sources. 'v'lSll K / ' uscharnber. cornlregulatory-reform/ forty-hour-sources ll ' u s owner: 6 coalesce

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