Five years after its passage, the Affordable Care Act is still undergoing minor tweaks. The latest change is good news for small businesses.
Earlier this month, President Barak Obama signed the “Protecting Affordable Coverage for Employees Act of 2015,” otherwise known as the PACE Act. The new law redefines the term “small” employers with respect to determining whether employers must provide health coverage for their employees within the Affordable Care Act.
Under most state laws, employers with one to 50 employees are considered small employers, while employers with 51 to 100 employees are considered large employers. The Affordable Care Act deviated from this standard by categorizing employers with 51 to 100 employees as small employers. However, prior January 1, 2016, states had the option to continue to treat them as large employers.
The definition is important for Affordable Care Act compliance because large and small employers are treated very differently under the Affordable Care Act. Health insurance offered in the small group market must meet certain requirements that do not apply to the large group market, including the requirement to cover ten “essential health benefits” and provide plans that plans that fall into the actuarial value levels (platinum, gold, silver, and bronze) established by the Affordable Care Act. These requirements, along with several others, have made purchasing insurance more costly for small employers.
The PACE Act curtails the expansion of the definition of “small employer” under the Affordable Care Act. Instead, it authorizes states to define the small employer market within their jurisdiction for employers of up to 100 individuals. According to the Congressional Budget Office, the new law will result in a net reduction in health premiums for insurance purchased by firms with between 51 and 100 employees.
Most states, including New Jersey, elected to delay the expansion of the definition of “small employer” through 2016. Accordingly, the state is expected to continue to define small employers as those with less than 50 workers. The path forward for states like New York, which already adopted the expanded definition, is less clear.
Employees vs. Independent Contractors: NJ Supreme Court to Address Complex Issue
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Data Center, Dark Fiber, and Lit Services Agreements in New Jersey: Key Terms and Legal Pitfalls
For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
