Under the Affordable Care Act's (ACA) Employer Shared Responsibility provisions—also known as the "employer mandate" or "pay or play provisions"—applicable large employers (ALEs) with 50 or more full-time employees (working an average of 30 hours or more) risksignificant penalties if they don't make affordable health coverage available to their employees. Under these provisions, employers must either offer minimum essential coverage that is "affordable" and provides "minimum value" to full-time employees, or potentially pays an employer shared responsibility payment to the IRS. These provisions penalize employers who either do not offer coverage or do not offer coverage which meets minimum value and affordability standards.
Some employers may choose to offer their employees "opt-out payments" or "cash in lieu of benefits," which are essentially cash incentives to waive employer-provided medical coverage. These opt-out arrangements are generally permissible under ACA but come with limitations. A key under ACA is to offer employees health care that is affordable, but, when an employee declines the opt-out payment, how do you calculate "affordable?"
|'Affordability'
To avoid penalties under ACA, ALEs must offer affordable, minimum value health coverage to substantially all of their full-time employees.
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Robert G. Brody
Robert G. Brody is the founding member of Brody and Associates, LLC, a Labor and Employment Law firm which represents management, founded in 1997. Before founding Brody and Associates, Bob was a Managing Partner for one of the largest Management Labor and Employment law firms in the United States, Jackson Lewis. Bob was born in New York, New York. He graduated Magna Cum Laude with honors in Economics from Kenyon College in Ohio in 1979. In 1982, he graduated in the top third of his class from Vanderbilt University School of Law in Nashville, Tennessee. He is licensed to practice law in Connecticut, New York, Michigan and Illinois, as well as admitted to nine United States District and Circuit Courts. Bob is an AV rated lawyer, which is the highest rating awarded by Martindale-Hubbell, a national directory of attorneys. The “AV” rating represents “Very high to preeminent” status, and is awarded based upon peer review. Bob has been in private practice for over thirty years. He has represented both public and private sector entities across the United States. He works in all industries and with companies that are leaders in their own industry, as well as with developing companies. In addition to providing daily counsel to management on Labor and Employment issues, such as the ADA, FMLA, workplace violence and alternative dispute initiatives, Bob represents employers before Federal, State and Local civil rights agencies and in court. Among the clients that have asked Bob to be their counsel are one of the largest fast food chains in the world, the world’s largest picture moulding manufacturer and distributor, a leading women’s fashion design house, one of the largest petroleum companies in the world, a tier one parts supplier to the Japanese auto industry, a management company representing world renowned entertainers, multi-billion dollar utilities, and many more. Bob presents seminars nationally and locally on Labor and Employment Law and related topics. He has been quoted and published in national publications and appears as a guest T.V. commentator on contemporary Labor and Employment issues. Bob is a contributor to some of the leading treatises in his field, including How Arbitration Works, The Developing Labor Law, and Employment Discrimination Law. Bob has also had numerous labor and employment law articles published on the Internet and in periodicals. Bob is very active with charitable endeavors. He is the former Volunteer Chairman of the Board of the Stamford Chapter of the American Red Cross. He also sits on the board of directors of Temple Israel in Westport, Connecticut, and was an officer there. To contact Bob, please email him at [email protected], or call him at 203-965-0560.
