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
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
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!
