The Significance Of The 'Save American Workers Act' To Franchises

Yesterday the House of Representatives passed Rep. Todd Young's (R-IN) Save American Workers Act, which provides relief from one of the employer mandates most harmful rules – the new definition of a full-time worker. The passage of this bill represents the first time the House of Representatives has passed legislation designed to fix the Affordable Care Act (ACA), not repeal it. Moreover, the bill has also had bi-partisan support with 18 Democrats voting 'yes.' Under current law, the ACA arbitrarily defines a full-time worker as one 30 hours per week. This rule dramatically raises costs by forcing employers to add part-time workers to health plans while also asking employers to pay a larger share of employee premiums. The Congressional Budget Office (CBO) estimates that the employer mandate will lead to 2.5 million fewer full-time jobs by 2024. Moreover, a recent study by Public Opinion Strategies confirmed these fears. POS found that 31 percent of franchise and 12 percent of non-franchise businesses have already reduced worker hours, a full year before the employer mandate goes into effect. Fortunately, by passing this legislation, the House has taken a significant step towards mitigating this consequence of the ACA. By restoring the traditional definition of 40 hours per week for full-time workers, this bill gives franchise owners greater flexibility in managing part-time employees. Employers can reward great work with more hours and employees will have more opportunities to scale up hours as they see fit. We implore the Senate to take up this legislation. Already, Senator Joe Donnelly (D-IN) and Senator Susan Collins (R-ME) have sponsored a similar bill, the Forty Hours Is Full Time Act. This bill has 13 co-sponsors including Democratic Senator Joe Manchin (D-WV). We hope these Senators can work with their colleagues to move us beyond temporary delays and towards real relief for small businesses so that they can continue to grow and create jobs.