Calvin Associates, Inc.

post »“Employer Facing Potential Liability For Allegedly Reducing Worker Hours To Avoid Affordable Care Act Penalties” 3-9-16

March 18 2016, 3:22 am

Bruce’s Summary: One part of the many parts of the Affordable Care Act (ACA) requires large employers to offer certain minimum health coverage to their full time employees. On February 9, 2016, the court determined sufficient facts were alleged in this case that the defendant interfered with the employee’s rights to benefits when it allegedly reduced the hours of such employees to avoid ACA penalties. The plaintiffs relied on Section 510 of the Employee Retirement Income Security Act of 1974, as amended (ERISA), which prohibits employers from interfering with an employee’s right to benefits under an ERISA-governed plan, including health insurance benefits. The court stated that there was enough evidence to support that defense acted with an “unlawful purpose” when it made hundreds of employees ineligible for current, as well as future health insurance benefits by reducing their hours. “None of the information contained herein should be construed as legal advice, nor are Calvin Associates consultants engaged to offer legal advice. If there is a need for legal advice, please contact and seek the advice of independent legal counsel.”