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Most everybody is aware of the Senate’s passage of a health care reform bill this past Christmas Eve. Not everyone is aware that the bill passed by the Senate contains a significant departure from the version passed by the House of Representatives – and one that treats contractors in the construction industry much differently than other small businesses.
The health care reform bill passed by the House of Representatives requires employers to provide some type of health insurance coverage to their employees, or pay a fine as a penalty if they fail to do so. In the House bill, there is an “across the board” exemption from these rules for any small business with less than $500,000 in payroll.
The health care reform bill passed by the Senate, however, treats contractors in the construction industry on a different footing - and much less favorably - than all other employers. The Senate bill contains a carve out that is applicable only to construction industry employers. Specifically, unlike all other small businesses, construction industry employers would be exempt from the requirement to provide health insurance coverage or pay a fine only if they have fewer than five (5) employees and less than $250,000 in payroll!
This - and other conflicting provisions within the health care reform legislation - must be hammered out in the weeks to come. Cohen Seglias Pallas Greenhall & Furman, P.C. will track this important issue for you and update you when the provisions of the final bill are resolved. Please contact Marc Furman, Esquire, Chair of Cohen Seglias’ Labor & Employment Group at (215) 564-1700 or mfurman@cohenseglias.com if you have any questions. |
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