Health Care Law's Employee Definition Draws Bipartisan Attention

Lawmakers focus on the definition of a full-time employee, noting its implications under the Affordable Care Act.

June 28, 2013

WASHINGTON – A House hearing earlier this week drew bipartisan attention on the Affordable Care Act and its definition of a full-time employee, CQ Roll Call reports.

Colorado Democrat Diana DeGette said that lawmakers should address employers’ objections to the employee definition. “I think we should be really working on ways to make it work better for small businesses and for everybody because the ultimate goal is to give high-quality health insurance to all Americans,” DeGette said. Republicans warned that the law’s requirements would be burdensome to businesses.

Under the health care law (PL 111-148, PL 111-152), a full-time employee is defined as an individual who works at least 30 hours a week. Opponents of the law argue that 40 hours is the more common threshold for a full-time employee. Several witnesses testifying before the Energy and Commerce Oversight Subcommittee noted that the current definition presents profound implications for businesses.

Witnesses from the U.S. Chamber of Commerce, National Restaurant Association and National Retail Federation all urged lawmakers to redefine full-time work to 40 hours a week.

“By far, the definition of full-time employee under the law poses the greatest challenge for my industry,” said Michelle Neblett, the restaurant association’s director of labor and workforce policy.

Republicans on the panel voiced concerns about the full-time definition, and DeGette said she thinks lawmakers should review the 40-hour suggestion.

“All of you are bringing suggestions to the table that I think we need to look at,” DeGette said. Meanwhile, Sens. Susan Collins, R-Maine, and Joe Donnelly, D-Ind., introduced legislation (S 1188) last week to change the law’s definition of full-time to 40 hours per week.

While the change appears to have some bipartisan support, there was concern that lawmakers may be reluctant to amend the law. The NRF alluded to that political problem.

“We respectfully don’t agree with those who either argue full implementation or full repeal are the only options,” said the NRF’s Neil Trautwein, vice president and employee benefits policy counsel. “We think we need to move ahead on specific changes.”

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