In order to remain viable, some restaurants try to recover the costs of the Affordable Care Act by imposing Obamacare surcharges on customers. Tom Kent was interviewed for an article recently published by Law 360 regarding the issue. Here is the link to the article; http://www.law360.com/hospitality/articles/514971/charging-for-aca-costs-is-legal-gamble-for-restaurants
Tag Archives: Patient Protection Affordable Care Act
Sarah Ivy, Chair of G&K’s Executive Compensation and Employee Benefit practice, provided the following update. Large franchisors and multi-unit franchise owners should take note.
We are watching the progress of H.R. 2575 very closely. Any upwards modification of the 30 hour per week standard in defining a full-time employee under PPACA would be a relief to those large employers subject to the pay-or-play penalties. We will keep you updated on the status of the Save American Workers Act bill. http://www.benefitspro.com/2014/02/04/committee-approves-full-time-worker-bill
Franchise owners continue to lobby Congress to return the definition of a full time work week to 40 hours rather than the current 30 hour week as defined in the Affordable Care Act. Franchise owners believe the current law will result in a reduction of employee hours as operators attempt to manage costs in order to remain sustainable. Here is a link to the article;
Tom Kent was interviewed for an article recently published by Law 360 regarding large hospitality brands and the impact of the Affordable Care Act. Here is a link to the article;
Sarah Ivy, Esq., Chair of the Employee Benefit and Executive Compensation practice at Giannascoli & Kent provided the following update;
Employers scrambling to comply with the Employer Mandate under the Patient Protection and Affordable Care Act scheduled to take effect January 1, 2014 can take a deep breath – the Employer Mandate has been delayed until January 1, 2015. On Tuesday, July 2nd, the Obama administration unexpectedly announced the delay of the Employer Mandate largely in response to the numerous concerns of employers about the challenges faced in complying with the Mandate. Within the next week, the Treasury department will issue official guidance regarding the delay. We will continue to update you as we receive additional information.
The Employer Mandate requires mid-sized and large employers (with 50 or more full-time employees and full-time equivalents) to offer qualified and affordable health insurance coverage to their full-time employees or to pay a penalty. The one year delay is intended to provide employers with additional time to update their health care coverage and better plan for the financial impact of the Employer Mandate without the threat of penalty, which could potentially cripple an employer’s ability to continue to operate profitably. Further, the Obama administration appears concerned that many employers intended to downsize their workforce and/or reduce employee hours to avoid the Mandate altogether, and is hoping it can simplify the Employer Mandate and its related reporting requirements consistent with PPACA.
Interestingly, there does not appear to be a resulting delay in the implementation of the Exchanges – or Marketplaces, which are set to become fully operational by January 1, 2014. The Exchanges, whether state-run or federal-run, will offer to basic, affordable health care coverage to all U.S. citizens. For those unable to afford coverage, subsidies will be given so that those needing health care are able to obtain such coverage. The penalties paid under the Employer Mandate are expected to provide financial support to the Exchanges. The big question now is, with the Employer Mandate delay, how does the administration expect to finance the subsidies granted through the Exchanges?