House Passes Bill to Lessen Burden of Health Care Law on Employers, Increase Take Home Pay for Americans

Apr 3, 2014 Issues: Healthcare

Washington, D.C. – U.S. Representative Glenn ‘GT’ Thompson, PA-5, issued the following statement after the House voted to pass H.R. 2575, the Save American Workers Act.  The legislation, which would help increase wages by repealing the 30-hour work week rule under the Affordable Care Act (ACA), passed the House by a vote of 248-179.

“Businesses across the country have stopped hiring and millions of Americans are beginning to see less take home pay as a result of the Affordable Care Act’s 30-hour work week requirement. Congress should be advancing policies that expand employment opportunities, rather than undercutting the ability of Americans to earn more and dissuading employers from expanding and bringing on new hires. The Save American Workers Act will lessen the burden being imposed on employers and help to increase wages so that Americans, especially those with limited means, can better provide for their families.”

Under the ACA’s "employer mandate," businesses with 50 or more full-time workers are required to offer health coverage to their employees or pay a tax penalty.  In determining who is a full-time employee and counts toward the 50-employee threshold, the ACA defines a full-time employee as someone who works an average of at least 30 hours a week.

According to an analysis by the Hoover Institution, the 30-hour rule puts 2.6 million Americans earning less than $30,000 a year at risk of having their hours and their wages cut.  Of that 2.6 million, 63 percent are women, nearly 90 percent do not have a college degree, and 60 percent are young Americans ages 19 to 34.  

The Save American Workers Act repeals the 30-hour work week definition of “full-time employment” and restores the traditional definition of a 40-hour work week.

According to the Congressional Budget Office H.R. 2575 will increase cash wages for American workers by $75 billion.