School districts and companies that employ more than 50 workers were granted a one-year extension before they are required to provide health insurance or face fines.
As reported in the June edition of School Transportation News magazine, this coming Jan. 1 had been the date in play for offering health-care benefits to part-time workers who log 30 or more hours a week. This includes many school bus drivers nationwide. Schools and companies would have had until then to provide health care or cut employee hours. The announcement on Tuesday by the Obama announcement extending the deadline to Jan. 1, 2015 buys more time for employers to figure out how to proceed.
To avoid increased costs tied to benefits and to meet current budget constraints, STN has learned that many school districts have already been directing department heads to make 29 hours the maximum that part-timers can work.
“Now is the time to begin analyzing your workforce,” said Mark Hinson, chief of HR at Adams 12 Five Star Schools near Denver, in the June edition of STN. “How do I staff and do so within my existing budget? That’s the talk they need to have with their budget and finance office. They’ve got to take the lead and identify those pockets of employees who need the part-time threshold.”
At play is a balancing act between additional costs tied to benefits and the possibility of losing well-trained, veteran school-bus drivers who are highly skilled and certified and the cost of hiring, training, certifying and background checking new hires.
Editor’s note — Take an online STN Web Poll at the bottom of the home page to weigh in on how your school district or company is reacting to the mandate.
