Under the ACA mandate the full time status has changed from 40 hours a week to 30. At this point this change is well known. Through this mandate, employers are required to track employees and when an employee goes over 30 hours a week are required to offer coverage to that employee; again, this is nothing ground breaking. One issue that needs to be addressed, because of the mandate, is cutting employees who have a history of working more than 30 hours. With the data required by the ACA this is something that is very easy to do. Using the ACA data in this fashion should be avoided.
Currently there is a class action lawsuit against Dave and Busters for this very issue. Employees of the company alleged that the company slashed hours for employees that worked more than 30. In turn the company stopped offering healthcare to these individuals. Additionally, this means that there pay was also cut.
ACA data should be used to track and monitor employees, but should not be used to cut hours to avoid healthcare and the expense that follows. Since this lawsuit is ongoing, employers should not use the data in this fashion. It has yet to be determined if this is an acceptable use of ACA data. The mandate itself was designed to include those high hour part time employees so they would be the offered the necessary health coverage. It was not designed to cut part time employee’s hours. This lawsuit is one that should be monitored for groundbreaking developments. Its outcome could create a whole new approach to monitoring high hour part time employees.
Doing this will help your company stay ACA compliant and ACA legal.
By: Your trusted ACA Compliance Solution Company,