Glossary

Pay or Play Rules

The Pay or Play Rules provide that Applicable Large Employers may be penalized where they (1) fail to offer coverage to substantially all full-time employees and dependents on a monthly basis or (2) offer coverage that is unaffordable to of full-time employees and dependents on a monthly basis.  The ACA defines a full-time employee as one who is reasonably expected to work an average of 30 hours per week or 130 hours per month.

The Obama administration announced a one year delay of the employer mandate requiring large employers to offer qualified health benefits coverage in 2014.  The effective date of the mandate will be pushed back to 2015 and additional regulatory guidance will be forthcoming. See Story