Are you ready for this? The PPACA (Obama Care) definition of what a full-time employee is may be changing. For larger employers this just had to make your day.
For the last year we have been looking at implementing a variable hour definition, dropping employees to under 30 hours to make them part-time, reducing employee counts to be under 50 employees, offering useless MEC plans and other measures that hurt American productivity overall. That is not to mention the impact it had on employees all over the country.
For many months we’ve heard rumors that a bill would be put forward in Congress that would change the 30 hour requirement to 40 hours. I don’t think I need to go into great discussions on the impacts this would have on employee benefit plans.
Well today there was an article stating that H. R. 2575 passed out of the Ways and Means Committee by a 23 to 14 vote. It’s not time to be popping any champagne corks but it may mean that saner minds are beginning to prevail in Congress.
Obviously suffering from a lack of a sense of irony Rep. Xavier Becerra, D-Calif voiced discontent because the bipartisan joint committee on taxation only gave him a week to review the bill. Rep. Becerra stated “We’re essentially voting in the blind,”. Apparently he does not like voting for legislation first to find out what’s in it.
If you are an employer who recently updated your summary plan documents and other mandatory employee benefit documentation, you need to stay in touch with your broker and whoever else you use for advice as you may be redoing many of those documents again.
For those of you who have never heard of a Summary Plan Document (this is not the SBC) now would be a good time to look into it and find out the ramifications of not providing one to your employees.
For more information contact Bill Weaver, Focus Benefits Group, 602-381-9900!