ERISA Class Action Suit Threatens Employers Who Avoid ACA By Cutting Hours

Employers used to be able to adjust worker hours to reduce benefit costs. According to an article on SHRM.org, a new class action lawsuit could end that practice.  One company’s alleged attempt to reduce the number of hours certain current and future employees work so that they will not be considered to be “full time” as defined by the ACA, which requires coverage to be offered to a smaller group or none at all, is the central claim in a class action lawsuit under the Employee Retirement Income Security Act (ERISA).

This may be an important case for employers to watch, especially those employers that have taken or are thinking about taking similar steps to address their employer shared responsibility obligations under the ACA.