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Forever 21 Suppressing Hours

Well – that did not take long to see another emerging trend regarding employer decisions about healthcare coverage! Yesterday my blog referred to UPS dropping spousal coverage, which is permissible

under the “Play or Pay” regulations, and will likely save the company money. Today we see reports that the store, Forever 21, is going to be suppressing many of its workers hours to 29.5 hours a week. This would keep these workers from being considered “full-time”. The significance of being tagged as “full-time” is quite important. If an employee is “full-time”, then in 2015, the employer either must offer them affordable minimum value coverage, or understand they may owe tax liability for that employee. You can see why an employer wants to keep employees under the 30 hour a week mark, which is now the legal definition of a full-time employee. I believe we will see many employers adopt this strategy to lower, or even in some cases, eliminate potential “Play or Pay” tax liability. We will keep our eyes open for any other new trends that emerge.