Despite retailers’ diligent efforts to comply with the Affordable Care Act (ACA), the law’s expansive and dizzying requirements are undermining their ability to continue providing coverage to employees and families.
RILA continues to engage closely with Congress and the federal departments and agencies to address a range of retailer concerns that are getting in the way of caring
for their employees.
ACA Full-time Definition
The ACA established the definition of a full-time employee as one who works 30 hours per week, as opposed to the traditionally understood standard of 40 hours per week that is rooted in the Fair Labor Standards Act. The new ACA definition is problematic for retailers and retail employees because it does not reflect employees’ desires for flexible hours or retailers’ needs for staffing stores.
RILA has been a driving force within the business community on this issue and will continue to press Congress to restore the 40 hour full-time employee definition.
40 Percent Excise Tax on Health Plans
Retailers are proud to provide health coverage to millions of employees and their families, as they have done for decades. As a result of the ACA, those responsible retailers will also be required to pay a 40 percent excise tax on the employer-sponsored health coverage and benefits for current and former employees, a surviving spouse, and dependents that exceed a statutory dollar threshold. RILA is concerned about the impact this tax could have on the availability of benefits to millions of retail employees and their families.
RILA welcomed the two year delay enacted at the end of 2015, but will continue to urge Congress to permanently repeal the tax.