Cyber Monday Sale! 50% Off All Access

Obamacare Mandate for Many Businesses Pushed Back a Year In yet another blow to the troubled law, the administration has decided to push back Obamacare requirements for many American businesses.

By Ray Hennessey Edited by Dan Bova

Opinions expressed by Entrepreneur contributors are their own.

Shutterstock

Small and medium-sized business will have yet another year to comply with Obamacare.

Late Monday, the Obama administration said companies with between 50 and 99 employees would not have to make required payments under Obamacare until 2016 -- a year later than planned. Under the law, companies have to meet certain coverage requirements or pay a penalty of as much as $2,000 per worker.

Companies with more than 100 employees still have to comply by 2015, the Treasury Department said. However, they do get a break. These companies can avoid penalties by offering coverage to 70 percent of their full-time employees in 2015 and 95 percent starting in 2016. Companies with fewer than 50 employers are largely exempt already.

Related: Aetna CEO Says Company May Opt Out of Obamacare

The delay is one of a long line of pushbacks for Obamacare, which saw a rocky rollout for individuals late last year. Systems for signing up members failed, forcing the government to delay compliance and walk back certain coverage requirements. Because of complaints from the business community, the employer mandate under the Affordable Care Act had been pushed back last July for all companies, from 2014 to 2015. The new delay lengthens that period for a full year.

Companies are getting some other breaks. For instance, employers won't have to cover seasonal workers, defined as those working for fewer than six months.

Also, new rules clarify the sticking point of whether volunteers are considered full-time workers. Businesses that employ a large number of volunteers, like local fire departments, will not have to provide coverage under the law now.

Related: How Both Parties Were Wrong About Obamacare and Jobs

The government seems keen to stop companies from shedding workers to get around the Obamacare requirements. Under new rules issued Monday, companies with fewer than 100 workers will have to certify to the government that they haven't fired workers to qualify for the new delay to 2016. They also must certify that they won't stop offering insurance plans that are already in place.

The latest delay is sure to feed fire to the debate over whether the administration has the authority to make so many changes to the law, which passed with no Republican support. Some have argued the Constitution precludes the administration from making so many changes to Obamacare, and that, rather than modification, the law should be repealed.

Related: With Individual Mandate Softened, Americans Are Paying Unfair Obamacare Tax

Ray Hennessey

Former Editorial Director at Entrepreneur Media

Ray Hennessey is the former editorial director of Entrepreneur.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

Elon Musk Still Isn't Getting His Historically High Pay as CEO of Tesla — Here's Why

A second shareholder vote wasn't enough to convince Delaware judge Kathaleen McCormick.

Leadership

Leadership vs. Management: How to Understand the Difference and 6 Ways to Bridge the Gap

Here are the key differences between leadership and management, highlighting their complementary roles and providing six strategies to develop managers into future leaders.

Legal

How Do You Stop Porch Pirates From Stealing Christmas? These Top Tips Will Help Secure Your Deliveries.

Over 100 million packages were stolen last year. Here are top tips to make sure your stuff doesn't get swiped.

Growing a Business

Her Restaurant Business Is Worth $100 Million — Here's Her Unconventional Advice for Aspiring Entrepreneurs

Pinky Cole, founder of Slutty Vegan, talks about going from TV producer to restaurant owner, leaning into failure and the value of good PR.

Business News

'Something Previously Impossible': New AI Makes 3D Worlds Out of a Single Image

The new technology allows viewers to explore two-dimensional images in 3D.

Business News

'I Stand By My Decisions': A CEO Is Going Viral For Firing Almost All of the Company's Employees — Here's Why

The Musicians Club CEO Baldvin Oddsson fired 99 workers at once over Slack for missing a morning meeting. But there's a catch.