Save American Workers Act of 2013

Great Seal of the United States (obverse)

Save American Workers Act of 2013 was a legislative proposal in the United States Congress aimed at amending the Affordable Care Act (ACA), commonly known as Obamacare. The primary goal of the Act was to change the definition of full-time employment from 30 hours per week to 40 hours per week for the purposes of the employer mandate. This mandate requires employers with a certain number of full-time employees to provide health insurance coverage.

Background

The Affordable Care Act, enacted in 2010, included a provision that defined a full-time employee as one who works an average of 30 hours per week. This definition was critical for the employer mandate, which compelled businesses with 50 or more full-time employees to offer health insurance or face penalties. The Save American Workers Act of 2013 sought to modify this aspect of the ACA, arguing that the 30-hour threshold incentivized employers to reduce workers' hours to avoid the mandate's requirements.

Legislative History

Introduced in the United States House of Representatives, the Save American Workers Act garnered support primarily from Republican lawmakers who argued that the 30-hour definition was harming workers and businesses alike. Critics of the ACA claimed that employers were cutting back on hours to keep employees under the 30-hour limit, thus avoiding the need to provide health insurance. The Act aimed to alleviate this issue by resetting the full-time employment definition to the traditional 40-hour workweek.

Despite passing the House of Representatives, the Act faced significant opposition in the United States Senate, where it failed to advance. Critics of the Act, including many Democrats and healthcare advocates, argued that increasing the threshold to 40 hours could have the opposite effect, potentially leading even more workers to have their hours cut as employers sought to avoid the mandate. They also contended that the change would undermine the ACA's goal of expanding access to health insurance.

Impact and Analysis

The debate over the Save American Workers Act highlighted the broader controversy surrounding the ACA and its impact on the labor market. While supporters of the Act believed it would protect workers from having their hours reduced, opponents feared it would weaken the ACA's provisions aimed at expanding healthcare coverage. Economic and labor market analysts provided mixed views on the potential impact, with some studies suggesting that the number of workers affected by the 30-hour rule was relatively small.

Conclusion

The Save American Workers Act of 2013 ultimately did not become law, but it represented a significant effort by ACA critics to modify key aspects of the legislation. The debate over the definition of full-time employment under the ACA continues to reflect broader disagreements over healthcare policy and labor regulations in the United States.