Affordable Care Act Impacts Requires employers and employees to share responsibility in making sure individuals have health insurance. Requires employers to report to employees and the IRS on employees’ health insurance.

Employer Penalties Offer health insurance for employees and dependents to 95% of their full time staff. (Penalty A) – 1/12(all FT – 30) x $2,000 FY 2015 Transition. 70% compliance Offer affordable, valuable health insurance to full time employees and their dependents. (Penalty B) – 1/12(each skipped FT) x $3,000

Full Time Definition Works on average 30 hours per week or more. Or Works on average 130 hours per month or more. Usually determined at time of hire, but may apply to other categories subject to measurement. – Variable Hour Workers – Regular Status Part Time Temporary Workers On Call Workers – Seasonal Workers

What Time is Measurable? Hours worked Paid Time Off; each hour the employee is paid or entitled to payment for periods of time including – Vacation – Holiday – Illness – Disability – Jury Duty, – Military Duty – Leave of Absence

Measurement Period One year measurement period will be used to define FT status One month administrative period will be used to enroll those found to be FT One year stability period would apply.

Seasonal Workers Work for 120 days or less Are included in Assessment to determine if FT for offering health insurance. If leave for 13 consecutive weeks or more considered new employee when return. If leave for more than 4 consecutive weeks but less than 13 apply rule of parity – If period of absence is longer than immediately preceding employment period, may treat as new hire upon return to employment.

Snow Plow Operator Example Hired November 1 Works 60 hours a week for 3 months. 720 hours/12 months = 60 avg per month during the year. Not FT Hired November 1 Works 60 hours a week for 3 months and then 25 hours a week in maintenance shop = 1620/12 = 135 avg per month = FT.

Recreation Example Hired August 1 Works 50 hours a week for 6 weeks No other work in year 50x6 = 300/12 = 25 hrs monthly avg not FT Hired August 1 Works 50 hours a week for 6 weeks Then works 29 hours a week for 46 weeks = ,334 = 1,634/12 = 136 monthly avg = FT

Admin Example Hired February 1 Works 50 hours a week for Dept. 1 for 6 months. Then 19 hours a week for Dept. 2 for 6 months. 1, = 1656/12 = 138 avg monthly hrs = FT Hired Feb 1 Works 19 hours a week for Dept. 1 for 6 months Works 30 hours a week for Dept 2 for 6 months = 1,176/12 = 98 avg monthly hrs not FT

Support from HR We will create monthly report to departments on all ongoing variable/seasonal employees It is important that departments partner with HR to monitor proactively. Variable/Seasonal Workers that become defined FT must be offered benefits. – Their hours total among all departments. – There is additional cost to benefits – There is additional cost if employee skipped and penalty assessed.

Guidelines for ACA Compliance Set Policy on Temp/Seasonal Use Measure whether Temp/Seasonal workers are FT for benefits. Automatically enroll employees determined FT Document when health insurance offered Obtain signed waiver when health insurance declined by an employee.

Simple Rules for Temp/Seasonal Workers Depts can hire temp staff to work 29 hours per week or less for up to 6 months. Depts can hire temp staff to work 129 hours or less per month for up to 6 months. Depts may hire double the number of existing temp staff to work up to 20 hours per week. Depts may use a staffing agency to hire temp workers up to full time. Depts may hire staff to work temporary on call, but will be monitored and should not exceed 29 hours per week.

Temp Agency Issues Temp agencies subject to ACA penalties too and may raise rates. Must provide health insurance to employees working 30 hours avg per week or 130 hours avg per month. Temp agency must provide workers’ compensation insurance. Temp agency must provide safety training for job workers are placed in.

Workers’ Compensation Changes General Employer Rule under OSHA means Hiring party also citable for temp agency workers. This recently expanded. Hiring party now also responsible to ensure temp workers have safety training for their job. Hiring party must now also report injury to a temp worker on their OSHA 300 log although temp agency carries the workers’ compensation insurance.

Temp Worker’s Compensation Implications Departments should obtain verification of safety training from temps before allowing them to work. Alternative; send to NEO safety training, and provide department specific safety training as well. Document dept. safety training done with temp workers. Fill in accident report on temp workers and send to HR as well as temp agency. Note that it is for a temp worker.

Questions? Seeking feedback on implications among departments. Recognize there may be unique scenarios Looking to build a policy that addresses ACA and your dept. needs.