Jenner & Block

“Capping Hours to Avoid ACA Costs Could Violate ERISA,” CFO

In this article, Jenner & Block Partner Craig C. Martin and Associate Nary Kim examine the implications of companies trying to avoid Affordable Care Act requirements by converting most full-time employees into part-time workers.  The authors explain that companies searching for this “quick-and-dirty” solution may find themselves running afoul of the Employee Retirement Income Security Act (ERISA).  “Decreasing employees’ hours to disqualify them from full-time status, if done to interfere with their right to health-care coverage under the ACA, just might violate that ERISA provision,” they observe.