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Tag Archives: ACA
Hospitality Industry Insurance Issues: Employer Timeline For “Implementing The Affordable Care Act (ACA)”
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Filed under Insurance, Liability, Management And Ownership, Risk Management
Hospitality Industry Health Insurance: Restaurants That Are “Applicable Large Employers (ALE)” Must Comply With Affordable Care Act “Measurement Period” Beginning November 1; Workers Classified As “Full-Time” If They Work Over 30 Hours Per Week
Across the country, many restaurant operators are being forced to make a difficult choice: Do they hire fewer employees, reduce the hours of 
current employees or raise menu prices? For some, the answer may be a combination of the three. But regardless of the conclusion they reach, there are no easy solutions…And they’ll have to make those decisions quickly, as the notification period begins in a few weeks and soon the Affordable Care Act will require businesses with 50 or more full-time-equivalent employees to offer health coverage to those employees or face significant penalties.
Without changes, the Affordable Care Act will hurt economic growth and make flexible work schedules for employees more limiting to offer.
The irony is that many restaurant owners already offer health coverage to their full-time employees. However, they define a full-time workweek as 40 hours, which is the accepted definition across most industries. Unfortunately, the Affordable Care Act has redefined “full time†employees as those who work an average of 30 hours per week in a given month. This means that restaurants and other businesses that have always operated as small businesses are now considered “large employers†under the law, and therefore are responsible for health care costs that could reach well into the tens of thousands of dollars.
While restaurant jobs are sometimes unfairly described as low-wage, menial work, the industry is one of the few that still allows employees to prove themselves and work their way up. One in every 3 Americans have worked in a restaurant at some point in their life, and many who work in restaurants chose to do so because of the flexibility in scheduling the industry offers.
This is an industry that accommodates part-time and full-time opportunities. It’s also an industry where people can begin their careers and work life with minimal experience, and learn not only about hospitality and service but also finance, advertising and other business and leadership skills.
Unfortunately, if the Affordable Care Act takes effect in its current form and redefines the full-time workweek as 30 hours, those opportunities could be significantly limited. It very likely means fewer hours for part-time employees and a more rigid scheduling structure.
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Filed under Health, Labor Issues, Liability, Management And Ownership, Risk Management
Hospitality Industry Health Insurance: Restaurant Industry Continues To Assess Options, Costs Of Implementing “2010 Affordable Care Act” Next January; #1 Issue For Small Businesses
“…restaurants employ roughly 10 percent of the workforce both in Georgia and nationwide. While many dining establishments have fewer than 50 employees and therefore won’t be subject to the mandate, others will be affected…the cost of health insurance has been the No. 1 issue facing small businesses, according to surveys by the National Federation of Independent Business…(margins) are so thin, there’s only X amount of dollars…(if health insurance was affordable) you’d have everybody insured.”
Steve Simon is co-founder of Fifth Group Restaurants, which operates seven restaurants and other businesses in the Atlanta area, employing more than 500 people. Currently, Fifth Group offers health insurance to its managers only.
But under the 2010 Affordable Care Act, when it is fully implemented next January, a business with 50 or more full-time workers must offer all employees working at least 30 hours a week a health plan that’s considered “affordable.” If it doesn’t, the business must pay a penalty.
Despite all the concern in the industry, some restaurant operators say the law’s impact may not be as great as originally feared. They cite the fact that to count as affordable coverage under the law –– thus escaping the penalty –– a business can charge workers up to 9.5 percent of their annual wages to pay for insurance. So if a worker is making $30,000 a year, the business can set his or her share of the premium at $2,850 annually, or $237.50 per month.
The restaurant owners say many workers will avoid such premiums by going without coverage, choosing instead to pay the ACA’s penalty of $95 for uninsured individuals.
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Filed under Health, Insurance, Labor Issues, Management And Ownership, Risk Management
