Key Industry Provisions

The following provisions represent areas that have the most significant impact on the industry and where we have opportunities to shape the final outcome that best protects our membership's interests.   

Click here for a pdf of the key provisions.

Part-Time Workers

• It's critical restaurateurs be allowed to set the criteria for offering health benefits to part-time workers which is why we support a part-time worker exemption.
  
• Part-time employees are an essential component of the restaurant industry.  On average, 43 percent of restaurant workers work more than 30 hours per week.  Many of our employees work for multiple employers, or receive coverage under another’s health plan.

Small Business Exemption

• As an industry comprised mainly of small businesses, it's critical that any reform have a robust small business exemption.
  
• The restaurant industry is comprised mainly of small businesses with seven out of 10 eating and drinking place establishments part of a single-unit restaurant business.  Over 90% of eating and drinking places have fewer than 50 employees.
  
• We operate on average profit margins of less than 4 percent, and in the current economic environment total industry sales have been down considerably over the last two years.

90-day Waiting Period for New Hires

• We need a 90-day waiting period for new hires to provide my committed full-time employees the highest quality benefits at the most affordable price.
  
• The restaurant industry is unique and has an extremely flexible work environment with high average turnover rate for employees, relative to other industries in the economy.  According to the Bureau of Labor Statistics, 75 percent of the employees in the restaurant industry leave their jobs annually, which is much higher than the overall private sector that typically sees 49 percent of employees leave their jobs annually. 
  
• A 90-day grace period before being required to provide coverage could have a significant impact on lowering costs of health care I provide new and existing employees.  The grace period would mitigate the resources spent to cover employees who have no intention of staying with the company for an extended period of time. 

Modify the Full-time employee definition

• I support modifying the definition of full-time employee to 390 hours per calendar quarter (13 weeks) instead of the current 30 hours per week on average.
  
• The modified definition takes into account the fluctuations in hours an employee works, which can be common in the industry.  This would reduce the impact of the employer requirements for restaurateurs because the employee’s hours are averaged over a longer period time.

Preserve ERISA Protections

• The restaurant industry is also a strong proponent of ERISA that allows some of our larger restaurant companies the regulatory framework to offer a uniform health benefits package across state lines. 
  
• By preserving the ERISA framework, employers maintain the ability to offer competitive and more affordable coverage in part through the financial and administrative savings permitted by this uniform national standard. 
  
• Also, ERISA allows employers the flexibility to tailor benefits to fit the needs of their workforce. 

Health Care Reform Key Principles

Click here for a pdf version of the principles 

Expanding coverage through containment of health care costs

• Contain health care costs by group purchasing through a network of private, nonprofit cooperatives.  
• Incentivize individuals to live healthier lifestyles and promote wellness in the workplace.
• Reform the health care delivery system to curb fraud and abuse, saving dollars for key health care needs.
• Address tort related matters that have contributed to the increasing cost of health care. 

Strengthening the viability of the private insurance market through increased competition and effective, but reasonable regulation

• Increase choice in coverage by expanding competitive and viable health care coverage options in the market place
• Create a more competitive, affordable and accessible private health insurance market for entrepreneurs, businesses, both small and large, and individuals.
• Preserve the rights granted under ERISA allowing employers to offer uniform benefits across state lines.

Ensuring the continued viability of private businesses while increasing the availability of health care options for Americans who choose to participate

• Taxes and fees aimed at financing health care reform must be sensitive to the economics of businesses and individuals.  Costs must avoid inhibiting new jobs creation, preventing basic business profitability or limiting the opportunity for business to continue or increase their ability to provide private health care options for their employees.
• While the association opposes employer mandates, any 'pay or play' option must fairly treat employers with high labor costs related to overall profitability.  A per capita tax on employers fails to recognize that restaurants employ large numbers of employees across the wage spectrum and operate on extraordinarily thin profit margins.  Employer mandates also fail to recognize that many restaurant employees work for multiple employers.
• Mandated minimum coverage levels fail to recognize the widely varying needs of the employee base of the restaurant industry.  It is preferable to allow employers to offer benefits that are uniquely aligned with the needs of their workforce.