Labor and employment issues in the hospitality industry in San Research Paper

Labor and employment issues in the hospitality industry in San Francisco - Research Paper Example The Patient Protection and Affordable Care Act requires hospitality employers to provide heath care coverage for its full-time employees. The Act provides that employers with more than 50 full-time employees or full-time equivalents must provide heath care coverage for its employees. Such an employer will be subject to tax if one or more of its enrolls for cover through a state exchange and qualifies for a premium tax credit or a subsidy because the employer does not provide minimum cover or provides cover that does not meet minimum value or is inappropriate. The tax for the employer, in this case, ranges from $2000 to $3000 for every employee who is not covered. Hospitality employers with more than 50 employees must, therefore, provide minimum essential coverage in order to avoid these taxes. The tax liability can adversely affect the operations. In order to ensure that employees have the appropriate cover, it is essential for the employer to determine if it's employees are full-time employees. The Act provides that a full-time employee must work for at least 30 hours a week and should have worked at least 130 hours in the preceding month. This implies that both hourly and non-hourly employees qualify as full-time employees if they meet the criterion. Additionally, the IRS provides the use of the look back or stability period. Under this method, an employer will need to look back at a period of three to 12 months and if the employee worked an average of 30 hours per week then the employee qualifies as a full-time employee.