There It Is: Obamacare Employer Mandate Delayed For Companies With Under 100 Employees

Tyler Durden's picture

Just as we predicted it would happen, here it comes:


Specifically, according Bloomberg, businesses with 50-99 workers have until 2016 before being penalized for not providing health-care coverage to full-time workers, according to final regulations released by Treasury.

Additionally, businesses with 100 employees or more must offer coverage to at least 70% of full-time workers in 2015 and 95% in 2016; those that don’t will face penalty;  Exemption in place for seasonal workers, those defined as generally at jobs 6 mos. or less/yr "While about 96 percent of employers are not subject to the employer responsibility provision, for those employers that are, we will continue to make the compliance process simpler and easier to navigate,” Asst Secretary for Tax Policy Mark J. Mazur says in statement e-mailed by Treasury. Furthermore, businesses with less than 50 employees are not required to provide coverage or fill out any forms in 2015.

Sure enough, the republicans were ready at the trigger:

Why is this not surprising? Recall what we said a few short days ago:

... the only reason why Obama is suddenly willing to compromise over every aspect of his "crowning achievement" is that finally its tactical, and strategic failure has become clear for all to see. So it would be best to enact it piecemeal, and claim success for whatever legacy aspects of the system are working, while blasting everything that his unprecedentedly complicated, centrally-planned contraption has unleashed.


Finally, why three years? Because by then Obama will be gone (absent some very radical changes to presidential term rules), and Obamacare will be someone else's problem.

Then again Hillarycare sounds so much better than Christiecare.

And so Obama's crowning achievement is just a little less crowning. However, the true negative impact will be borne not by the current president but his successor... who will likely do the same and extend the full provisions indefinitely as well, as the last thing the struggling economy needs right now, as we have not tired of explaining for the past two years, is, well, Obamacare.


More color via Washington Post,

The Treasury Department rolled out Monday afternoon more tweaks to the health care law's requirement that all large employers--those with 50 or more workers--provide insurance coverage to their workers. This is the part of Obamacare was supposed to take effect at the start of 2014, but was delayed by the White House this past summer as the White House was facing significant push back from employers.

In today's final rule, the Obama administration is essentially relaxing the employer mandate for 2015--in a big way for medium-sized businesses, and a smaller way for the largest employers. Here's a rundown of the key changes.

1. Employers with between 50 to 99 employees get another year of transition.

The Obama administration will give medium-sized businesses another year's pass on providing insurance coverage to workers. Treasury estimates that about 2 percent of American businesses fall into this category, but does not have numbers on how many people work for businesses of this size. For these companies, the employer mandate does not take effect until 2016.

Employers who want to take advantage of this particular exemption will need to certify with the federal government that they are not cutting back on positions just to fall below the threshold. "It's simply so they don't game the system," one senior administration official told reporters on a phone call this afternoon. "They have to certify they're not doing that and not dropping their coverage."

2. Employers with 100 or more workers aren't required to cover everyone.

Previous regulations had required large employers to offer coverage to 95 percent of full-time employees to be considered in compliance with the employer mandate. Today, Treasury is ratcheting that requirement back: Large companies that offer coverage to 70 percent of their employees will be counted as fulfilling the employer mandate. This is a transitional measure and, by 2016, large employers will need to hit the original, 95 percent target. Treasury estimates another 2 percent of American businesses fall into this category, with more than 100 employees, but again, we don't have numbers on how many workers those companies employ.

3. Volunteers won't be counted as full-time employees.

There had been some tussling on Capitol Hill over whether certain volunteers - mostly volunteer firefighters - would count as full-time employees, for purposes of the health care law. Today's rule clarifies that they do not count as employees--which eliminates any incentives to get rid of volunteer positions.

There are other, smaller tweaks in the new Treasury rule that deal mostly with how, exactly, employers are supposed to count how many hours employees work (for seasonal workers, for example, or teachers, this can actually be a pretty difficult task.)

It's hard to to know how many people will be impacted by these changes since there isn't great data on how many people work for the different-sized employers.


* * *

Does this mean, according to inevitable WaPo fluff piece follow up to its ode to unemployment, that millions of workers will no longer get the privilege of being untethered from their jobs?

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Lagging Indicator's picture

So, the president can legislate as long as his name is on the bill?

remain calm's picture

My company has 103 eployees i guess we will fire 3 to get relief. I am sorry but thank the dickhead we elected president. He knows best

HyBrasilian's picture

BECAUSE: < than 100 'OBAMACare'

max2205's picture

Super, now stawxks can rally till Barry goes to Hawaii permanently

El Oregonian's picture

Die! you piece of crap law, DIE!!!

Shocker's picture

So temporary relief to some of the Small businesses. But in the end its the same game

Layoff List:


nuclearsquid's picture

I try not to be cynical, but this reeks of careful orchestration.  or utter stupidity.  Its like they responded to the 29.5 hour part time critizism with the most narrowly defined actioin possible, extending the excruciation out one bit at a time.  There is no longer a shred of me that thinks this is about the election.


wee-weed up's picture



Yep, Democrat congresscritters are dyin' out there...

Because of ObozoCare.

They desperately need any shred of help they can get in the 2014 elections!

ElvisDog's picture

This will have the opposite effect - it will make people even more disgusted with Obamacare.

f16hoser's picture

Seriously, all kidding aside, why do we have a Congress??? Anyone??? (crickets, crickets)

Laws passed but not adheared too. Don't you just love our Communist Government that picks and choses which laws to enforce? We are truely a "Banana Republic" / Thanx to both the Democrat and Republican Leaders. You truely are pieces of SHIT!!!!!!

Call me when the Revolution starts. Unavoidable now.

gmrpeabody's picture

Uhhh..., fuck if I know.

Beam Me Up Scotty's picture

It's another JobZ program. 535 more people on the job paying their taxes (well maybe not).

knukles's picture

Pure unadulterated lawlessness.
Congress passes a law crafted by the sponsoring companies under the guise of fairness, inclusiveness, diversity and whatever other crap they claim, none of which is true in the least, is signed into law by the president who then modifies said law at whim essentially making Congress moot and unnecessary, neither with any of the powers bestowed or emboldened, making a complete mockery out of the entire fucking originally pretty damned good system.

And they expect us to abide by the laws which they ignore.


NoDebt's picture

And I thought they called Reagan the "teflon president."  This guy's got Reagan absolutely SMOKED in that comparison.  To borrow a comment from another ZH'er a while back "he could shoot a 10 year old blind girl dead in the Rose Garden and nothing would happen to him."

He is our elected dictator for the next 3 years.  Get used to it.

Van Halen's picture

You think it's bad now, wait till Hillary ascends the throne.

mofreedom's picture

ChrispyCare sounds better to me, cause I love everything fried.

Anywho, if the president's name sounds like it may bleed it can't lead, which Chris Christie can't (and he must bleed X two)...he's only a follower of some pond scum.

nmewn's picture

Ahhh, I see King Selfie has issued another decree...well lets see now, what else happened today for this to distract everyones attention, as lawless as it is.

Why, here it is, the other shiny ball in the air:

TUCSON, Ariz. -- A man convicted in the shooting death of a federal Border Patrol agent during a firefight that revealed the government's botched gun-smuggling investigation known as Operation Fast and Furious was sentenced Monday to 30 years in prison.

Manuel Osorio-Arellanes, who is from El Fuerte in the Mexican state of Sinaloa, is the only person to be convicted in the Dec. 14, 2010, shooting death of Border Patrol Agent Brian Terry near the Arizona-Mexico border.

U.S. District Court judge David C. Bury handed down the sentence, 360 months with credit for time served."

Well, this is very odd indeed, I'm not seeing anyone under Holder being indicted for facillitating strawman gun purchases (a felony, depending whether done at a federally liscensed dealer, a federal offense) or international gun smuggling (another felony and most definitely federal).

Bow deeply to your masters you patriotic slaves bearing arms in service to your King & his Court and know that if you are killed, they'll only get 30yrs, with credit for time served.

nmewn's picture

360 divided by 12 (one year) = 30...but you're probably right, he'll do ten or less when someone drops his guts out on the prison floor with a shiv.

Thats generally how they try to kill truth these days, lock it away, snuff it out and hope it stays buried forever.

Jugdish's picture

"Call me when the Revolution starts. Unavoidable now"


Why don't you start the revolution Joe Stack ? You get the call everyday but you don't answer.

InjectTheVenom's picture

screw Joe Stack !  I'LL start it !!   (after the American Idol finale)

SDShack's picture

I predicted this month's ago. The fact that 0zer0 did it shows how desperate the dumbcrats have become. The bottom line is, NO delay is going to stop the trainwreck that is coming this fall. The die has been cast. 0zer0care has obliterated the risk pools and that is begining the Insurance Death Spiral. Insurance Execs everyday are saying they have to raise rates because they are mandated to offer Cover Everything plans, but only the sick are signing up, not the young invincables. It doesn't matter that the Employee Mandate is delayed. Double digit increases for EVERYONE is already being planned because the risk pools have been obliterated. By this summer the Insurance Companies will re-calculate the new rates based on these new risk pools. The will ask for a bailout from 0zer0 for losses ALREADY incured in 2014 as mandated by 0zer0care, and 0zer0 will have to bail them out. If he doesn't the Insurance Companies will sue, and win and that will completely destroy 0zer0care. Then in October open enrollment, everyone is going to see their premiums rise double digits in anticipation of 2015, which will have even worse risk pools because of the employer mandate delay extension. This is the death spiral. It will continue to get worse every year, and there is nothing 0zer0 can do to stop it because this is all being driven by the Insurance Companies now and the risk pools. Eventually, the Insurance Companies will throw the dumbcrats under the bus to protect themselves. The wipe out of the dumbcrats in 2014 is going to be epic unless the repukes save them with something equally stupid like amnesty.

wee-weed up's picture

I agree, but never underestimate Boner's ability to snatch defeat from the jaws of victory! He's done it so many times before!

kralizec's picture

You mean like on illegals, the debt ceiling and the budget?

Yes, the Great Weeping Carrot bends over easier than a streewalker.

Chupacabra-322's picture

Laws do not exist. Get it through your think skulls. Only UCC Universal Commercial Codes, Acts, Ordinances & Statutes.

BraveSirRobin's picture

I the Obama, of the People's Democratic Republic of Obama, in order to create a more perfect Obama, establish injustice, domestic intraquility, provide for my defense, promote my general welfare, and secure money you have for myself and my cronies, because you didn't build that, do ordain this constitution for the People's Democratic Republic of Obama.

Article I:

There shall be a congress whose members shall be selected by me. The congress shall be in session when I declare it to be in session, and not in session when I say so. It shall pass all laws as I instruct it. Should congress pass a law and I sign it, I may change that law or enforce or not enforce that law as I desire. Should congress fail to act, I may pass a law by executive order and change, enforce, or not enforce such orders as I desire.

Article II:

There shall be a president, and I shall be him. The president shall have such powers and privileges as he so desires.

Article III:

There shall be a Supreme Court, whose members shall be appointed by me. They can pronounce anything they like, as I shall ignore everything they do if it pleases me.

Bill of My Rights:

1. I shall respect no religion, and prohibit the free exercise thereof as I desire. I may abridge the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

2. A well regulated Militia, being a threat to my security and power, the right of the people to keep and bear Arms, shall not be tolerated.

3. No Soldier, in time of peace or war, shall be quartered in any house if he should criticize or think ill of me.

4. The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall be violated as I desire, and no Warrants shall need be issued.

5. Any person may be deprived of life, liberty, or property, without due process of law; and shall have private property taken for my use, without just compensation, as I deem, because you didn't build that.

6. In all criminal prosecutions, the accused shall not enjoy the right to a speedy or public trial, and may be detained indefinitely without trial if I deem them to be a terrorist or other malcontent.

7. In suits at common law, I may deem my agencies and representatives, and I myself, immune from all actions and rulings, nor do we need to respond to subpoena or court order of any kind.

8. Excessive bail shall be required if I deem it so, as well as excessive fines imposed, and cruel and unusual punishments inflicted, as I desire.

9. The enumeration in the Constitution, of certain rights, shall not be construed to apply to any person other than myself.


10. The powers not delegated to me, nor prohibited by me, are reserved to me

unrulian's picture

A different version of the state of the union, the truth:



nwowatcher911's picture

Don't forget to count these too:


Fukushima Radiation causing U.S. Insurance Companies to EXCLUDE all Coverage for Radiation Claims




Worldwide cancer cases expected to soar by 70% over next 20 years:


Seasmoke's picture

actually you guys need to fire 4 can thank me later

SilverIsKing's picture

Just create a second corporation and move the 4 over.

Seasmoke's picture

Actually then they can have 49 in company A and 49 in company B and cover nobody !!!!!......but of course then they will have to fire 5 employees. 



knukles's picture

Then make a third company within each they have 34.333 employees none of which need be fired, but just for shits and grins, put 'em all on part time and tell them they now enjoy the Privilege Bestowed Upon Them of Not Having to Work too Much as Envisioned by Dear Boy Leader & Co.

Forward Marxism

And since each company employs a .3333 person, it can be designated as a potential Javits Wagner O'Day Act organization (rings the heart bells of the Progressives) and apply for significant government subsidies, preferential contracts and unremitting foolish aggrandizement by management without terribly efficient oversight.  (Like collecting salary, bennies, etc, from 3 companies, separately)

Colonel Walter E Kurtz's picture

If you have similar ownership the ACA law makes you count the workers as one company. And if you are really the same company and just trying to get around the law, you are asking for a mess in bookkeeping plus risk the IRS noticing and coming after you. 

The work around, is for the company offer insurance so they are not subject to the penalties, but then make sure workers are give incentives to not sign up for it. I think there are creative people out there that can come up with way to make this happen.




remain calm's picture

Thank you. If you are one of the 103 then consider yourself excluded from the dickheads decree.

Raging Debate's picture

Or Seasmoke - All my employees are now volunteers. The corporation expenses pays all necessary housing, utilities and transportation like volunteer firefighters. Might decrease my taxes from 17% down to 5%.

Communism can be fun! All those volunteers dont pay any taxes either.

kchrisc's picture

Who is "we?" It doesn't include me. Like George Carlin, I did something more rewarding with my time at home.


"They chose, you voted, they won."

Rafferty's picture

Am I missing something or is Obama simply making up and applying legislation as he goes along, like a latter-day Caligula?  Have these amendments been debated in Congress?

Jumbotron's picture

Debated in Congress?   What's a Congress?

kchrisc's picture

He's applying Article 3, Section 3 principles to his administration.

spiral galaxy's picture


Uh Oh!!! Obama sez no layoffs because of his bullshit.  So if you bullshit about laying off workers so you don't have to deal with Obamacare bullshit, he will unleash his perjury law bullshit so you wind up in legal bullshit!!  Just watch where you step! :-)

"Officials on Monday said that any business claiming they were eligible for the new one-year delay because they have fewer than 100 workers must certify, under penalty of perjury, that it had not reduced its workforce merely to qualify for that exemption."

Urban Redneck's picture

The little guys just have to learn how to play like the big boys, hundreds of thousands of pages of non healthcare regulations provide millions of justifications for firing useless eaters...

And when all else fails, just blame the weather, the administration not going to admit under oath that that BLS is nothing more than BS.

Beam Me Up Scotty's picture

So if your business falters a bit or you become more efficient and don't need 4 or 5 employees you have to keep them or face the wrath? Fuck that. It amazes me that anyone thinks this clown is a good president.

Nick Jihad's picture

No, if you want to lay off employees, you need to make sure that you make a sizeable campaign contribution via a well-connected Democratic bundler, like John Corzine, for instance. And if you happen to have Republican or Tea Party political activity in your past, you can just forget about layoffs, unless you want Eric Holder's Just-Us department to give you a proctological experience to remember.

Meat Hammer's picture

Did you fire those people so you wouldn't have to provide health insurance?

No, I fired them because they voted for Obama.  No perjury here!  Are we done?

Froman's picture

4 - 50 to 99 is the sweet spot.