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Risky business: Cutting workers' hours to save on health costs

from The Wall Street Journal

The Obama administration's announcement that it will delay implementation of a key provision of the Affordable Care Act gives firms more time to make key decisions about how they will comply. The choice for organizations with many hourly workers has generally come down to a few options, among them: extend benefits to more employees and swallow the cost; fail to comply and instead pay a penalty for every uninsured worker; or circumvent the requirements by cutting workers' hours to below 30 per week. But companies that choose that last route do so at their peril. Cutting hours to avoid paying benefits may put firms on the wrong side of the law, say legal experts. more


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