Many small business owners have written in asking whether part-time employees are eligible for health insurance. Unfortunately, the answer is not always clear, so we’re going to shed some light on the topic.
What does the Affordable Care Act say?
Signed in 2010, the Affordable Care Act (sometimes referred to as Obamacare) aims to provide inexpensive health insurance options to the entire American population. The bill stipulates that employers must offer coverage to 95 percent of their workforce, according to The Balance.
But what happens to the other five percent? Well, that’s up to the employers’ discretion at this point, and this is typically where part-time employees fall. But, state laws and industry standards can mandate companies to provide coverage to part-time individuals that work a certain number of hours. So it’s best to check with local state laws.
What does the Fair Labor Standards Act say?
The Fair Labor Standards Act (otherwise known as FLSA) was signed in 1938, and it states that all workers have the right to minimum wage and paid overtime. Interestingly enough, the FLSA doesn’t define part-time hours, but it does say that overtime is more than 40 hours a week or per pay period.
What does the US Bureau of Labor Statistics say?
This federal department was formed over 134 years ago, and it defines part-time workers as individuals who work up to 34 hours per week. If an employee works more than this, then they should be considered full-time workers. Current Obamacare guidelines suggest that small businesses with more than 50 full-time employees have to provide health care coverage.
Why should small businesses provide coverage to part-timers?
Many experts believe that offering your part-timer’s health insurance leads to greater employee satisfaction, and reduces the general turnover rate. We understand there’s a cost component to this decision, but we recommend giving one of our agents a call to discuss your options at 1-855-614-5057 or visit HealthQuoteInfo.com.