With the push to boost their bottom line, many companies cut employee hours. This move reduces wages and benefits while saving the company money. If your hours have been cut, the move from full-time to part-time could seriously impact your ability to make ends meet. You’ll be glad to hear about a new full-time employee definition as outlined in the Patient Protection and Affordable Care Act (ACA).
The New Full-Time Employee Definition
Passed in 2010 and going into effect in 2015, the ACA states that employees who work 30 hours a week are considered full-time. Previously, employees had to work 40 hours or more per week to be classified as full-time.
In addition to the new definition, the law includes health benefit requirements. Employers with more than 50 employees must provide health insurance benefits. Companies with 50 to 99 employees will face a fine starting in 2016 if they do not provide quality and affordable health insurance to full-time workers. Companies with over 100 full-time employees will be fined starting in 2015.
Companies Respond by Cutting Hours
In light of the new legislature, many companies announced their decision to reduce employee hours. The Employee Benefit Research Institute (EBRI) conducted a survey to determine the reason for this downsizing shift. The study found that employers were actually reducing hours before the law. They largely reduced hours based on economic reasons rather than because of the new full-time worker definition.
The New Definition Gives you an Advantage
Despite a shift toward reduced employee hours, the National Business Group on Health praises the new legislation and points out its benefits to employees like you. As a non-profit association, this group includes more than 400 large U.S. employers on its membership roll. According to President and CEO Brian Marcotte, the updated definition will ultimately boost employment and improve the economy. It will also benefit employers of all sizes, including small businesses in service, hospitality and retail industries.
Flexible hours are another advantage of the change reports Marcotte. Now, employers and employees can offer a flexible work schedule that benefits each party and boosts morale without sacrificing quality.
Whether your hours were recently cut or will be soon, discuss this new full-time employee definition with your human resource manager. You have the right to health benefits despite your decreased work hours.
