Filed Under:Markets, Employee Benefits

Union: Employers can abuse full-time worker safe harbor

Treasury Secretary Timothy Geithner (AP Photos)
Treasury Secretary Timothy Geithner (AP Photos)

Some commenters say the Employee Benefits Security Administrator (EBSA) has poked a hole in the Patient Protection and Affordable Care Act (PPACA) employer health coverage mandate provisions.

Carol Golubock and Amy Adams of the Service Employees International Union (SEIU) said parts of guidance that EBSA and other federal agencies posted earlier this year would give an employer too much discretion over the time it takes to measure whether a worker is a full-time employee and too much flexibility when classifying workers as "variable hour" or "seasonal" employees.

PPACA does not require employers to provide coverage, but it does require employers with 50 or more full-time employees that fail to provide health benefits to pay a penalty.

Employers that do offer health coverage will have to limit any waiting periods that occur before coverage begins to 90 or fewer days.

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Nichole Morford

Nichole Morford
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