IFA - International Franchise Association : Franchise Leader Calls On Congress To Return To Traditional 40-Hour Definition Of Full-time In ACA

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Jenna Weisbord, 202-662-0766
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Employer Mandate Relief is Essential to Avoiding Shift to Part-Time Workforce

WASHINGTON, Jan. 28, 2014-Peter Anastos, owner and co-founder of the Maine Course Hospitality Group, which includes Marriott and Hilton brand hotels, called on Congress to return to the traditional definition of 40 hours per week as full-time under the Affordable Care Act. Anastos' testimony echoes a primary concern of the International Franchise Association (IFA), that the current 30-hour a week definition will result in less hours for employees.

In testimony to the House Ways and Means Committee, Anastos said that "the ACA's provision requiring employers to provide coverage to full-time employees and defining full-time as 30 hours per week, will cause many employers to simply manage their employees to fewer hours."

"Not only has the employer mandate discouraged job creation and business expansion, it has also damaged existing jobs by including a misguided statutory requirement that discarded more than a half-century of established labor policy," Anastos said.

IFA has long advocated for a return to the traditional 40-hours a week definition of a full-time worker, hoping to avoid a drastic shift to a part-time workforce. "This is a common sense, bi-partisan effort to address a problem we know is only going to get worse," said Steve Caldeira, IFA president & CEO. "Relief will provide employers and employees more flexibility on hours, avoiding the worst effects of the employer mandate, while leaving the structure of the law intact."

Anastos emphasized that he is "committed to maintaining the coverage that my current employees currently have access to," but higher costs may force him to keep new employees under 30 hours a week. "Ordinarily, we would reward our best employees with more hours. Decisions like this one are evidence that the employer mandate and the definition of full-time at 30 hours have created an increase in part-time work throughout the American economy," he said

Data from a recent Public Opinion Strategies survey shows Anastos' experience is not an isolated one. According to the POS study, 64 percent of business decision‐ makers in franchise-owned businesses and 53 percent in non ‐ franchisee owned businesses believe the ACA will have a negative impact on their businesses. Moreover, 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.

The IFA continues to advocate for policy changes, such as the bi-partisan H.R. 2988 / S. 1188 Forty Hours is Full-Time Act sponsored by Rep. Dan Lipinski (D-IL) and Sens. Susan Collins (R-ME) and Joe Donnelly (D-IN), which will help franchises grow and create jobs.

See full testimony for Anastos HERE . See IFA 2014 Policy Platform HERE.

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About the International Franchise Association
The International Franchise Association is the world's oldest and largest organization representing franchising worldwide. Celebrating over 50 years of excellence, education and advocacy, IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the more than 825,000 franchise establishments, which support nearly 18 million jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.