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Question
The management group that owns the senior living facility for which I work has recently instituted an organization wide policy of limiting work weeks to a maximum of 28 hours.  The only employees exempted from this new policy are salaried workers and licensed nursing staff.

My question is why, exactly, would this policy be beneficial?  I am aware that the Affordable Care Act enacts penalties to employers of workers who qualify for and take advantage of the government subsidized option.  As I understand the law, the option provided by your employer must cost, for single coverage, more than 9.5% of your Adjusted Gross Income.  Our company's insurance would not cost more than 9.5% of that majority of the employees' income.  In addition, many employees, like myself, choose to obtain insurance from our spouses' plans.  

Our family of companies employ hundreds of people.  Our particular senior living facility requires well in excess of the 50 full time licensed nursing staff it would take to include the company in the affected size.  Assuming that the policy remains as is, there would be no possible way to avoid this thresh hold.  

What is the great financial threat I am missing that would drive our management group to such an extreme decision?  Where are the costs to the company to continuing to employ myself and others like myself at full-time when we will be unable to buy into the subsidized exchange programs?

I know that the management group receives loads of legal advice, but I can't help but question the wisdom in driving off all of your full-time staff.  I hope your answer will allow me to understand the costs that my employer is including in this equation.  Thanks in advance for your input.

Answer
30 hours a week is full time and must be provided insurance by the company through the new ppaca (obamacare) legislation. 28 hours a week is part time employment and they do not have to be offered benefits. It would make a huge financial impact on the company.

Also if the company keeps full time employees down to under 50 employees they escape a huge amount of regulations and penalites enforced on them by the PPACA plan.

This is not a good piece of legislation and it is costing jobs everywhere. I wish to hire several people, but I have a cap at 49 employees so we are all doing several jobs. I think it will have some real substantial loss in employment and hours employees work in the months to come.

Shirley

Human Resources

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Shirley McAllister, CPP, PHR

Expertise

I can answer questions pertaining to Compensation, Health Benefits, Retirement Plans, Payroll,Payroll taxes, Employee selection, Employee Termination, Training, and Employee Incentives. I have offices in U.S., Canada, UK, South Africa,Australia and NZ. I am most confident in the U.S. and Canadian but have knowledge of the internationals. I do not have extensive knowledge of South Africa, Australia and New Zealand. I do have some Human Resource Knowledge in those areas. Please do not ask me homework questions, I do not have time to answer them.

Experience

I currently hold both the U.S. and Canadian Payroll Certifications. I currently hold the SHRM PHR certification. I have worked in the Human Resources area with high emphasis on compensation and benefits for 25 years at the same company. My company is an international company and I work with our International offices whenever there is a Human Resource area needing addressed. I volunteer on the American Payroll Association hotline and have for the last 10 years or so. I answer many questions each week for other payroll and HR professionals, mostly on taxes, benefits and compensation issues. I have been the trustee for our 401K plan for Retirement benefits and our 125 Cafeteria Plan for Health Insurance benefits.

Organizations
SHRM, National APA, National DOLEA, State National Mentoring Network I.O.M.A. Advisory Board

Publications
I.O.M.A. BNA

Education/Credentials
Boise State University Human Resource Certificate Program PHR through SHRM CPP through American Payroll Association Payroll Administrator and Payroll Supervisor certification through Canadian Payroll Association Published writer of Payroll and Benefit articles in a payroll Publication 25 years experience in an International Company

Awards and Honors
Citation of Merit 8 years in a row for hotline service for A.P.A. Honor Award for child mentoring service through RSVP and National Mentoring A "Pat on the Back" award for outstanding leadership as a Youth Group Leader by "The Salvation Army." Runner up for Employee of the Year at my Company twice and Employee of the month 4 times.

Past/Present Clients
I used to answer questions on Ask.com when they had a similar quesition and answer section. I volunteer for APA hotline I also belong to several HR forums when I often answer questions

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