House Acts to Prevent Lost Wages Due to Obamacare

Press Release

The House of Representatives today passed bipartisan legislation cosponsored by Congressman Kevin Cramer to prevent lost hours and wages due to the implementation of the 30-hour rule in Obamacare. The Save American Workers Act repeals the 30-hour definition of full time employment for the Obamacare employer mandate and restores the traditional 40-hour definition.

Under the Affordable Care Act (ACA), the mandate requires employers with 50 or more employees to provide health insurance to all full-time employees. By changing the traditional definition of full-time employment from 40 hours a week to 30 hours a week, the ACA forces many employers to cut workers' hours below 30 in order to avoid the mandate and its penalties.

On July 2, 2013 the Obama Administration delayed enforcement of rule until 2015. However, according to a U.S. Chamber of Commerce small business survey, 71% say the law makes it more difficult to hire, and one-half say they will either cut hours or replace full-time employees with part-time workers to avoid the insurance mandate.

"This disruptive rule is putting 2.6 million workers at risk of losing hours and wages," said Cramer. "While the Obama Administration seems to celebrate less employment and reduced hours, our bill prevents workers from being hit with reduced take-home pay. There was bipartisan support in the House today, but we will need the Senate to stop this rule from being implemented."

The legislation was approved by a vote of 248 to 179, with 230 Republicans and 18 Democrats voting in favor.

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