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Revised Definition of Full-Time Employees May Reduce Burden on Employers

An amendment that may lead to redefining “full-time employee,” for the purposes of the Affordable Care Act's Employer Mandate to offer coverage to full-time employees, was included in the budget bill passed last weekend by the US Senate. Senator Susan Collins (R-ME) drafted the amendment. 

The current definition of a full-time employee (FTE) is 30 hours per week. If the definition is revised, the number of hours will most likely be increased and therefore may reduce the burden on employers complying with the employer mandate.

The budget bill now needs approval from the House of Representatives, which will not come easily, given the current partisan gridlock in Congress. However, IHRSA wanted to place the news on your radar and will keep members informed of any updates.

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