Do You Know About Obamacare’s Part-Time Trap?

Do You Know About Obamacare’s Part-Time Trap?

IRS LogoMoe Lane highlighted a number of business in several states that are cutting their employees’ hours (when they’re not actually laying off employees), to prepare for the coming asteroid-strike that are the Obamacare taxes. The IRS, which is in charge of enforcing the bazillion-page monstrosity, recently decided 30 hours is the new “full-time” and so tens of thousands of workers will find their hours cut from a normal 32-40 down to 29, so their bosses can afford to keep them on the payroll.

The whole cycle of government action/business reaction/government overreaction was as predictable as an Obama campaign speech but that didn’t stop the administration from shoving Obamacare on us with a haughty “you’ll find out what it’s all about later, peasant”. Now, we’re in the reaction stage of the cycle.

You know what’s coming, right? Overreaction? Well, here’s the latest from the IRS, as reported in the New York Times.

The new rules apply to employers that have at least 50 full-time employees or an equivalent combination of full-time and part-time employees. A full-time employee is a person employed on average at least 30 hours a week. And 100 half-time employees are considered equivalent to 50 full-time employees.

Thus, the government said, an employer will be subject to the new requirement if it has 40 full-time employees working 30 hours a week and 20 half-time employees working 15 hours a week.

So, your local construction company with 100 employees can’t cut them all down to 29 hours to escape the Obamacare snare. The boss will have to limit them to less than 15 hours of work, because even at 29 hours, they count as 50 employees, enough to trigger the coverage requirements. Now, I’ve done a little bit of scheduling in my time, and I can tell you it will be a nightmare to cover 2,900 man-hours with 14-hour a week employees. Most companies will simply fire people until they’re under the 50-employee threshold and deal with the resulting reduction in income.

In other words, Obamacare hasn’t even begun to cripple the economy, but when it starts, the wounds it inflicts will be brutal.

  • Kathy Mitzel Fosland

    This is Communist control as our constitutional rights ate being taken away it was written for the people by the people!!! Not for the government by the government!!! We better make up or it will ruin us as a free nation!!

  • Norm Levesque

    Guess who gets hurt the most, the upper class, WRONG! The average working American will be beaten to the ground while the affluent snobs sit back and real in the wealth. Easy for them to make rules on the less fortunate….

  • Michael Chamberlain

    Jimmie, it’s even worse than you say for the construction company in your example. They won’t be able to avoid the “Obamacare snare” anyway.

    According to Section 10106(f)(2) of the law the threshold for compliance with the employer mandate for “any employer the substantial annual gross receipts of which are attributable to the construction industry” is 5 full-time employees, not 50.

    • dufekin

      Actually, not so. Congress repealed that law with Pub. L. 111–152, § 1003(a) a week after enacting it. Call it misdirection intending to confuse.

      In fairness to the IRS, the IRS did not define a 30-hour-per-week employee as full-time. Congress did so, in a naturally vague and confusing way to exclude some seasonal and temporary employees as full-time. The employer must pay a special tax on every full-time employee not covered under health insurance (naturally with many strange exceptions). IRS only wrote a rule to determine definitively whether an employee is indeed full-time; its rule must conform to Congressional statute.

  • Robert Stevenson

    This is INTENTIONAL! Any remaining companies will need to raise their prices. We will see Mass inflation that rivals the era of Carter! The Middle Class will die a very slow painful eradication. If your a Contruction worker, God help you if you decide to stay here. Best move to Canada or Australia. At least those Countries do not have a Socialist Muslim in power!

    • Robert Moody

      Nope, just a queen B!

  • Dennis Waugh

    people knew this was going to happen.but thay still voted for ___________?

    • walter conell


  • Bill Somerindyke

    most of these folks voted for the marxist ruler … let reap what they sowed!

  • Robert Moody

    Obama is out to destroy this nation.

  • walter conell

    The Devil is loosed upon the Earth and resides in America.