Affordable Care Act Mandate Delayed for Employers

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The Obama administration has announced that it is delaying the employer mandate for implementing certain provisions of the Affordable Care Act (“ACA”).  The ACA requires certain employers to provide healthcare coverage to their full-time employees.  The employer mandate originally was supposed to take effect in January 2014 but was delayed to January 2015 this past summer.  On Monday, February 10, 2014, the administration made further extensions.

Under these extensions, employers with between 50 and 99 employees now do not need to comply with the coverage requirement until 2016 (formerly 2015), but they face reporting requirements in the meantime.  Employers with 100 or more employees must offer coverage to 70 percent of their full-time employees by 2015, and, by 2016, they must provide 95% of their full-time employees with coverage.  Employers who fail to abide by these provisions face tax penalties.

The Obama administration stated that these delays provide “transition relief” for employers to adjust to the new requirements.  Connell Foley’s employment law attorneys welcome the opportunity to counsel employers regarding the ACA employer mandates.