Small Employers, the ACA, and Direct-Hire Temporary Employees | Bay Area Employee Benefits

While small employers are not subject to the play-or-pay penalties, if they do offer coverage, they are required to abide by the eligibility rules set forth by the Federal Law, the Affordable Care Act. Therefore, a person hired as temporary, full-time employee must be offered coverage, just as an individual hired as a regular, full-time employee. The ACA currently defines “full-time” as an employee hired with the intent to work 30 or more hours per week.men_corporate_building-280x300
If your direct-hire Temporary employees are hired to work less than 30 hours per week, the employer is not required to offer coverage.
If your direct hire Temporary employees are employed to work less than 90 days, the employer is not required to offer coverage.
Although the ACA play-or-pay penalty does not apply, penalties through the Department of Labor can be hefty if the employer is found to be in violation of the Federal Law. The employer could potentially be assessed a tax of $100 per day during the noncompliance period with respect to each individual to whom a violation relates.
If you have questions regarding the ACA, contact CPEhr’s Benefits Department at 310-270-9851.