News & Updates

← Back to News & Updates

House Passes Bill to Amend ACA's Definition of FTEs

Apr 24, 2014

​Society for Human Resource Management
April 14, 2014

On Thursday, April 3, by a vote of 248 to 179, the U.S. House of Representatives passed the Save American Workers Act (H.R. 2575), introduced by Representative Todd Young (R-IN, below). In short, the bill would amend the Internal Revenue Code to redefine the term "full-time employee" as an employee who is employed on average at least 40 hours a week.

When Congress enacted (and President Barack Obama signed into law) the Patient Protection and Affordable Care Act (PPACA) back in 2010, it defined a full-time employee as one that worked at least 30 hours a week in the context of a mandate in the law which requires employers of 50 or more full-time employees to provide health care coverage to their workers or pay a penalty. If enacted into law, the revised definition, as currently drafted in H.R. 2575, would become effective on January 1, 2015.

SHRM supports H.R. 2575 and ​sent a letter to all members of the U.S. House of Representatives encouraging their support of the proposal. Representative Lynn Jenkins (R-KS), a member of the House Ways and Means Committee, ​recognized SHRM for our support of the bill during the House debate on H.R. 2575. Last month, during the Employment Law & Legislative Conference, SHRM members advocated in support of the bill during Capitol Hill visits to the offices of their elected officials on March 19.

To read the rest of this article, please click ​here.

©2017 BEERE&PURVES
Privacy Policy