Different business industries all have their own interests at stake and are affected by PPACA accordingly. Labor-intensive industries, such as restaurant owners, car dealers, and employers with commissioned sales staff, which comprise of mostly entry-level employees, have been affected by the outcome of PPACA. There was much apprehension by business owners and operators regarding the potential costs that may arise with PPACA.
Since there are various different business models and structural set-ups– from large domestic and international companies to joint ventures or franchises- the whole spectrum of each business industry is affected differently. The employer mandate was upheld by the Court includes that employers with 50 or more full-time employees (or the equivalent of full-time employees) are required to offer health coverage to full-time employees and their dependents or pay a penalty. However, you do not have to pay a penalty for the first 30 full-time employees. Therefore, a smaller franchise operation may avoid the employer mandate because the size of their staff may not meet this requirement. A chain of hotels or related operations, on the other hand, may be subject to the employer mandate depending on their company structure.
As for part-time employees, employers with who meet the criteria of 50 full-time employees or full-time equivalents, do not have to offer health coverage to part-time employees at all even if the number is greater than the 50 full-time employees. While you may not need to offer health coverage to seasonal employees, they do count toward whether an employer is subject to the employer mandate. Furthermore, health coverage does not have to be offered if there are 30 or less full-time employees.
It is therefore imperative to reevaluate your business set-up and get proper legal counseling on the restructuring of the entity that owns and/or operates your business. Companies need to tweak their benefits plans to comply with the complex healthcare law as there is a component of the new law that allows employees to sue for not providing the benefits they are supposed to be given. Needless to say, it is and will remain invaluable to have proper iron-clad business contracts and policy manuals in place for your full-time and part-time employees to ensure you stay compliant with all new legislation and reforms while benefitting from the new opportunities that come with PPACA.
Disclaimer: This article is not intended to be legal advice. Legal advice depends on each and every person's particular circumstance. This article is for informational purposes only. Arora Law Firm and Radhika Arora, Esq. specifically disclaim any responsibility for positions taken by readers in their individual cases or for any misunderstanding on the part of readers of this article.
Copyright 2012 by Arora Law Firm. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed without prior written consent of Arora Law Firm.