Compliance » Cutting Employee Hours To Dodge Obamacare – Or Not?

Cutting Employee Hours To Dodge Obamacare – Or Not?

February 27, 2015

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Employees have accused Staples Inc. of purposefully keeping some employees at under 30 hours in order to avoid making them eligible for healthcare benefits under the Affordable Care Act. Kate O’Sullivan, from William Gallagher Associates, notes that any employer who does manage worker hours to avoid having to pay benefits may be in violation of ERISA, Section 510. She looks at the language of Section 510 and warns that the strength of any case alleging a violation will in part be a function of what the company’s latest plan documents say and what employees are actually told.

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