Momentum Builds for Revising the ACA’s Full-Time Employee Definition

Take Action: Encourage Your Elected Officials to Support the Save American Workers Act On Feb. 4, the House Ways and Means Committee passed H.R. 2575, the Save American Workers Act. The act would repeal the 30-hour definition of "full-time employment" in the Affordable Care Act (ACA) by replacing it with the more traditional 40-hour definition. AGC is encouraging Congress to pass H.R. 2575 and urges members to use the Legislative Action Center to send a letter of support to their elected officials in support of the legislation. AGC sent a letter in support of the legislation and highlighted the fact that the construction industry is typically project-based, transitory and seasonal, which distinguishes it from other professional industries with more predictable hours. As a result, many construction employers rely on part-time, seasonal and variable-hour employees. In addition, the construction industry consists of many smaller employers with limited human resource and administrative staff. These two issues alone add layers of difficulty for a construction firm that is required to use the complex formulas in the ACA to determine whether or not it is considered a large employer under the law. AGC also stressed that despite the one-year delay of the reporting and enforcement provisions of the ACA, the law continues to add layers of administrative burdens for employers, while other regulations are yet to be issued. Replacing the definition of a full-time employee to the more commonly accepted 40 hours per week will, at the very least, reduce some of the complexity associated with the ACA. For a review of the Affordable Care Act employer requirements, please see the summary prepared by Washington Council Ernst & Young. For more information, please contact Jim Young at (202) 547-0133 or youngj@agc.org.