Beginning in 2014, many employers will be required to expand their current health insurance coverage to more employees or face stiff penalties resulting from the Patient Protection and Affordable Care Act. This is because, for purposes of the "shared responsibility" (aka "pay or play") requirements, full-time employees include any employee who works, on average, at least 30 hours per week (or 130 hours per month). This definition is a significant departure for those employers who have traditionally looked to the 40-hour work week as the threshold for full-time employee status.
Under Section 4980H of the ACA, failure of "applicable large employers" to provide "substantially all" of their full-time employees and their child dependents with "minimum essential coverage" that is both "affordable" and provides "minimum value" will trigger an employer penalty if at least one full-time employee receives premium tax credits or a cost-sharing reduction for health insurance coverage through a federal or state exchange.
