WASHINGTON Restaurant association officials praised an amendment to the Senate health care bill that would eliminate certain financial penalties placed on restaurateurs and other employers who require full-time workers to wait more than 30 days before they become eligible for health insurance coverage.
Sen. Mary Landrieu, D-La., together with several co-sponsors, introduced the amendment Wednesday to the Patient Protection and Affordable Care Act, which is currently being debated in the Senate.
The sponsors said the amendment would help ease the burden for small businesses by lowering costs.
As written, the current Senate health care measure requires employers who provide insurance coverage to make it available within a maximum of 90 days. However, if a worker is not covered within 30 days, an employer must pay a penalty of $400, which would rise to $600 after 60 days.
Landrieu's amendment, if passed, would eliminate those penalties and allow for a longer grace period.
Given the foodservice industry's relatively high turnover rate for hourly workers, much of which takes places within an employee's first 90 to 100 days, "those penalties become a huge issue for us," said Scott Vinson, vice president of the National Council of Chain Restaurants in Washington. "Many employees work only for a couple of months.
"With this amendment, Senator Landrieu recognizes that a one-size-fits-all mandate on employers isn't workable in all industries," Vinson continued. "The Landrieu amendment acknowledges the unique characteristics and workforce of service sector employers, including our wafer-thin profit margins and flexible workplaces."
The amendment was co-sponsored by Sens. Jeanne Shaheen, D-N.H.; Blanche Lincoln, D-Ark.; Mark Warner, D-Va.; and Olympia Snowe, R-Maine.
The National Restaurant Association also voiced strong support for the amendment. "This pro-restaurant amendment would eliminate the onerous fees currently in the Senate bill for waiting periods of less than 90 days," said Dawn Sweeney, the NRA's president and chief executive.
David French, vice president of the International Franchise Association, said, "Without this amendment, many franchise businesses would struggle to comply with the requirements of the legislation. Some sectors in franchising typically experience higher employee turnover rates than the overall economy, and the Senate bill creates an administrative nightmare for these employees."
Vinson said the industry is anticipating another amendment sponsored by Sen. Maria Cantwell, D-Wash., which is expected to clarify language in the current Senate bill about what constitutes a full-time worker.
Contact Paul Frumkin at [email protected].
