Congressman Bob Latta (R-OH) today released the following statement in support of H.R. 2575, the Save American Workers (SAW) Act, which the House passed today. The legislation would reinstate the definition of full-time employment to 40 hours, ultimately protecting jobs and ensuring that the American workforce is not pushed to part-time as employers determine how to pay for the significant cost increases of providing healthcare coverage under Obamacare.
"Today, the House took an important step to ensuring hardworking Americans do not lose hours or their jobs as a result of the President's signature law," said Latta. "The 30-hour rule included in Obamacare forces employers to fundamentally alter their employee's work schedule by cutting hours and shifting a larger proportion of their workforce to part-time. It could also draw workers away from certain industries, like the food service industry, where workers rely on the flexibility to build a work schedule that meets their needs -- whether taking on extra shifts or working around a class schedule. By aligning the definition of full-time employment to the traditional industry standard, the House has taken action to reform the President's health care law and mitigate obstacles to American workers and businesses, and I urge the Senate to do the same."
Under Obamacare, a 30-hour workweek is considered full-time, triggering the employer mandate. This rule puts 2.6 million lower income workers, those with a median income of less than $30,000, at risk of losing their jobs or hours. One-half of small businesses have stated that they plan to either cut hours to reduce full-time employees or replace full-time employees with part-time employees to avoid these significant cost increases. Industries that employ lower skill workers or a large number of entry-level positions will also be hardest hit under Obamacare's 30-hour rule, as 89 percent of impacted workers do not have a college degree.