Renacci, Jenkins introduce bipartisan bill to clarify seasonal employees under ACA

A clear definition for seasonal employment under the Affordable Care Act’s (ACA) employer mandate would be established under legislation introduced by U.S. Reps. Jim Renacci (R-OH) and Lynn Jenkins (R-KS) that seeks to protect small businesses.

By establishing a single definition, the Simplifying Technical Aspects Regarding Seasonality (STARS) Act aims to reduce administrative burdens and employer mandate fees for small businesses that rely on seasonal workforces.

“Seasonal business owners in Ohio and across the country continue to struggle to comply with the overly burdensome provisions within the ACA,” Renacci said. “As a former small business owner, I know how difficult it is to navigate our convoluted tax code and the amount of time and money that’s associated with compliance. This bill will bring much-needed clarity and flexibility to seasonal employers, allowing them to focus on growing their businesses and investing in their employees instead of devoting their limited resources to deciphering this health care law.”

Currently, the ACA requires employers with more than 50 employees to offer health insurance or face a penalty under the employer mandate. The law, however, includes conflicting definitions of seasonal employment.

Jenkins said the ACA, also known as Obamacare, is hurting employers and employees in Kansas.

“I am constantly reminded of the negative effects every time I tour a small business or speak with Kansans — most recently on my Kansas farm tour,” she said. “Our small businesses, especially the agriculture sector, depend on seasonal help. They deserve to have clarity and this bipartisan legislation cuts through this murky law that ensures small businesses are not negatively impacted or penalized because of confusing rules.”

Small businesses need to be protected so they can create jobs and help grow the U.S. economy, Jenkins added.

Renacci and Jenkins introduced the bill with bipartisan support from U.S. Reps. Kurt Schrader (D-OR) and Jim Costa (D-CA). The measure has generated support from various industry groups, including the National Restaurant Association and National Retail Federation.

“The STARS Act is an important bipartisan step toward accommodating the ACA to the practical needs of the real world,” Neil Trautwein, the vice president of health policy of the National Retail Federation, said. “The ACA is a complicated law and we need more efforts like this to translate complexity into workable solutions for job creators.”