As deadlines near for companies to "play or pay," a term coined by media organizations to describe the penalties associated with a business's failure to comply with Affordable Care Act provisions, many companies are making sure they're covered.
Under ACA regulations, employees working 30 or more hours a week are considered full-time and therefore must be eligible for health insurance through their employers. While some businesses have expressed opposition to the mandate, at least 10 percent of employers say they're going to promote from within to increase their full-time staffs to avoid fees, according to data from Duke University and CFO Magazine's "Global Business Outlook Survey," MedCity News reported.
This mentality has is evidenced in Port Canaveral, Fla., where some employees will make the jump from part-time help to full-time employee status, according to Florida Today. It's all in an effort to ensure total compliance with the ACA without cutting hours, said Brenda Morrish, deputy director of human resources for the city.
Morrish asserted that based on the number of employees they had, the city government would have faced up to $440,000 in fines each year until they reached compliance. Twelve public safety officers and 45 cruise ship operators were moved from part-time to full-time staff positions.