A New Jersey town has cut hours for some part-time employees to avoid providing health insurance under the federal Affordable Care Act.
Middletown Township made the adjustment for 25 workers to prevent a $775,000 annual increase in health insurance costs.
The law requires employers to offer coverage to employees who work at least 30 hours a week or pay a penalty.
Township Administrator Anthony Mercantante tells the Asbury Park Press officials decided to reduce hours now even though the so-called “employer mandate” has been delayed until 2015. He says it’s not clear how far back the federal government will look at employee hours.
More than half of Middletown’s 148 part-time employees are crossing guards, who work less than 30 hours a week.