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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.

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