Tuesday, July 9, 2013

"Job Sharing" Around Obamacare's Employer Mandate

It goes without saying, but I'll say it anyways: Obamacare is complicated. But the general premise of the employer mandate is simple: Large employers must either provide healthcare to their full-time employees or pay a fine.

Under the Affordable Care Act (aka "Obamacare"), a full-time employee is generally defined as someone who works over 30 hours per week. Some employers have started cutting employees' hours to get below that magic threshhold.

CNN Money has an interesting article about employers who already took steps to exclude employees from the mandate:
Some Fatburger owners even began "job sharing" with other businesses, teaming up to share a higher number of employees all working fewer hours. Someone could work 25 hours at one Fatburger, 25 at another one with a different franchise owner, and still not be a full-time worker under Obamacare rules.
This allows employers to provide full-time hours for their employees, but still excludes them from the mandate. Of course, as the article points out, the mandate is on hold until 2015.