The Affordable Care Act requires large employers to offer health insurance to part-timers working 30 hours a week or more. But, as the Los Angeles Times reported this morning, more and more large employers are opting to take hours away from part-time workers so they won’t have to provide them with healthcare.
“Not only will these workers earn less money, but they'll also miss out on health insurance at work,” Chad Terhune writes in the Times. To combat this practice, Assembly Bill 880, which is being considered by the Assembly Health Committee in Sacramento, would discourage companies like Walmart and Darden restaurants (think Olive Garden) from dumping their part-time employees from company healthcare.
Are employers wrong to cut employees hours so they won’t have to cover the cost of their healthcare coverage? Or are businesses entitled to take advantage of the language of the ACA?
Jimmy Gomez, California Assembly member - D, for California's 51st District including Eagle Rock, East LA, Echo Park, Silver Lake and more; Gomez authored AB 880 to penalize employers who have employees on Medi-Cal
Dierdre “Dede” Kennedy-Simington, Insurance Broker and Advisor, Vice President of Polenzani Benefits in Pasadena which advises employers on insurance coverage and legal compliance; President-Elect - LAAHU (Los Angeles Association of Health Underwriters)