Press Releases

On Thursday, the House passed H.R. 2575, the Save American Workers (SAW) Act.  H.R. 2575 repeals the 30-hour definition of “full-time employment” in the Affordable Care Act, commonly referred to as ObamaCare, and restores the traditional 40-hour definition protecting hourly wages for American workers.

Following the passage of H.R. 2575, Congressman Larry Bucshon, a physician from Southern Indiana, stated:

“I consistently hear from individuals, businesses, school corporations, and local governments here in the 8th District that they are struggling under provisions in the ACA.  One in particular, the 30 hour workweek definition, is estimated to put over 2.6 million Americans at risk of seeing their hours and wages cut.

“During the worst economic recovery since WWII, we should be helping Americans find work, not making it more difficult.  Unfortunately, the ACA puts employees at a disadvantage. It’s hard to find or keep a full-time job when the government penalizes employers for giving workers more than 30 hours of work.  How can hardworking Hoosiers care for their families when the ACA is putting jobs, wages, and hours on the line? It’s unfair and simply does not make sense.

“By repealing the 30 hour definition in the ACA, we are restoring the wages and hours the law puts at risk. This bill has bipartisan support in both chambers of Congress and from the American people. I sincerely hope the Senate will act immediately to send this bill to President Obama’s desk.” 

Yesterday, Dr. Bucshon took to the House floor during debate of H.R. 2575 to discuss the impact the 30 hour provision is having on 8th District school districts and to urge his colleagues to support the legislation.

Bucshon stated, “The vast majority of these employees already receive health insurance either through their spouse or other sources and many of them have worked for their school corporation for many years.”

He continued, “School Corporations don’t have the luxury of raising taxes to pay for these provisions of the Affordable Care Act. They aren’t a major business that can raise their prices.  School corporations simply can’t afford the Affordable Care Act. These Hoosiers work every day with students and because of this provision in the Affordable Care Act, our students will suffer.”

BACKGROUND:

H.R. 2575, the Save American Workers Act, passed with a bipartisan vote of 248 to 179.  More information on the bill can be found here.

In June of 2013, Bucshon joined the Indiana Congressional Delegation to send a letter to Health and Human Services Secretary Kathleen Sebelius warning that schools would be forced to cut workers' hours to avoid the ObamaCare penalty.

Examples of hours and jobs being cut in Indiana:

“Wolfe’s is one of countless small businesses, nation-wide, that will be forced, under the President’s current proposal, to streamline its workforce:  drastically reducing the number of full-time employees, and holding a vast majority of its work staff to a less-than-30-hours work week.” (WTHI; 6/25/13)

“Similar to other businesses across the country, Wolfe’s Auto Auction in Terre Haute says it is cutting work hours of several of its employees because of the insurance mandates of the federal Affordable Care Act…The reason cited? The Affordable Care Act defines a full-time worker as anyone who works 30 hours or more each week, and businesses will be required to provide health insurance to all of their full-time employees.” (TribStar; 6/25/13)

 “Fort Wayne Community Schools is trimming the hours of more than 600 part-time teaching aides and cafeteria workers in anticipation of a projected budget shortfall and to satisfy the requirements of the federal health care law, a school official said. Kathy Friend, chief financial officer for FWCS, said the school district is dropping 610 employees from 30 hours to 25 hours per week starting June 3, rather than provide them with health insurance as mandated by impending federal regulations.” (Journal Gazette; 5/27/13)

“The Affordable Health Care Act goes into effect next year, forcing employers to offer health insurance to any employee who works more than 30 hours a week. As a result, the Spencer County Commissioners are thinking about cutting hours for their part-time employees.” (14 WFIE; 6/10/13)

“The Vigo County School Corp. will no longer provide school bus transportation for middle school athletic events, starting with the 2013-14 school year…. The reasons cited are the Affordable Care Act and the need to reduce bus driver hours, as well as the need to reduce overall transportation costs.” (Tribstar; 6/16/13)

 “Greencastle Schools authorities have been wrestling with this question in recent months, coming to the hard decision to cut the hours of part-time workers to 29.5 or fewer hours.  The changes will apply to instructional assistants and kitchen assistants, a total of 54 GCSC employees.  As full-time workers under the new standard, the school would have to offer insurance to these employees.  Such benefits would come at a cost the school cannot afford.” (Brazil Times; 5/10/13)

“Lafayette School Corporation, where more than 150 of the schools approximately 600 non-certified employees have had their hours reduced to meet the federal definition of part-time.  ‘We cannot go out and raise the price of our product to assist us covering this.  We would have to go to the taxpayers and ask for some type of increase and I just don’t see that happening,’ said Les Huddle, superintendent.” (Courier Journal; 6/8/13)

“The Washington School Board…said many part-time workers may have to see hours cut to below 30.  The cut, Superintendent Daniel Roach said, was to fall under the proposed mandate of 30 hours.  Although the schools offer health care to the teachers, administrators, full time personnel and board members, the school will have to look at positions like substitute teachers, coaches and cafeteria workers to make sure they fall under the 30-hour-a-week minimum.” (Washington Times Herald; 6/20/13)

“Superintendent Ty Mungle explained due to changes in insurance provisions in the Affordable Healthcare Act, as of April 29 all members of staff that are not currently covered by the school’s insurance will be cut back to 28 hours per week.  Matt Roberts, president of the Eastern Greene Classroom Teachers Association, stressed to the board these series of changes are detrimental to the teachers’ dedication to the school system.” (Daily World; 4/8/13)

“Ninety part-time employees with the Fayette County School Corp. saw their work hours cut [the week of June 10th] due to a provision of the federal Affordable Care Act.  Hodges said 450 employees worked more than 30 to 35 per week.  The corporation does not offer health insurance to them.  The estimate cost is less than half of the fines the corporation would incur for not offering health insurance to those 90 employees, but is still a large sum, Hodges said.” (Indiana Economic Digest; 5/11/13)

“Womack [owner of IHOP franchise across Indiana] estimates the cost of [The Affordable Care Act] to his company will be 50 percent greater than his company’s earnings…’If the health care reform law is not repealed or if the employer mandate doesn’t go away, we’re going to have to take drastic action,’ Womack explains.” (The Foundry; 3/22/13)

”To prevent [Spencer County] from acquiring new full-timers, commissioners may opt to revise salary ordinances to reflect the new federal mandates under Affordable Care.  Kitchen workers’ schedules are divided into four-hour increments, with some working more than others…By consensus, they agreed to better divide duties and work about 28 hours each week.” (Journal-Democrat; 6/6/13)