Impact of Obamacare employer penalties
Under the Affordable Care Act, firms that employ 50 people or more must provide full-time workers with health insurance, or face thousands of dollars in penalties. California labor advocates say large companies are already cutting workers' hours to get around the Obamacare mandate. Proposed California legislation is aimed at preventing low-wage workers who lose hours - and their health care coverage - from turning to Medi-Cal, the government-funded insurance program. This bill goes further than the federal health care law in that it applies to part-time workers as well as full-time. And that could have devastating and unintended consequences for some California nonprofit businesses and family farms.
CHCF Center for Health Reporting | June 17, 2013
Labor advocates report that employees are already losing hours at work as businesses try to avoid the Obamacare mandate to provide health insurance to full-time employees. The new federal health care law requires companies to provide health care coverage to employees working 30 hours a week, but not for those working less than that. A California bill is aimed at preventing large businesses from skirting their responsibilities under Obamacare, but critics say this could inadvertently hurt businesses with part-time employees.