Thank you, Mr. Chairman. I yield myself such time as I may consume. Mr. Speaker, as the Senate continues to push for a 25 percent increase in the Federal minimum wage, they continue to ignore that millions of hourly workers face as much as…
Thank you, Mr. Chairman. I yield myself such time as I may consume.
Mr. Speaker, as the Senate continues to push for a 25 percent increase in the Federal minimum wage, they continue to ignore that millions of hourly workers face as much as a 25 percent pay cut as a result of ObamaCare. Because of the 30 hours is full time provision buried in the employer mandate, many employees face the prospect of being limited in their work hours. When they are not allowed to work more than 29 hours, they simply aren't able to generate the income they need to support themselves and their families.
It is worth noting that an employee who sees his hours cut from 39 to 29 is losing 10 hours a week, which, over the course of a month, is an entire week's worth of wages. The employees we are talking about are the people who most depend on getting every hour and every bit of wages that they can. We are talking about custodians, cafeteria workers, and substitute teachers at your child's school. We are talking about the waitresses and busboys at your favorite restaurant, about the cashier who rings you out at the grocery store, and about the guys on the assembly line who help make your car. In my district, we are also talking about adjunct professors at places like Ivy Tech Community College and Indiana University.
These are all Americans who want to work, but they are dealing with the unintended consequences--and I do believe they are unintended--of this health care law, ObamaCare. Some of these provisions are limiting their hours and pay, and this needs to be fixed. So I introduced the Save American Workers Act because I want to help these hardworking Hoosiers and other Americans who are just trying to make ends meet. By simply repealing this provision and restoring the traditional 40-hour workweek, we can help make an America that works.
I urge my colleagues on both sides of the aisle to support this bill. I commend my colleagues on the other side who have already signed on as cosponsors.
I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, it is worth noting this bill would decrease by $63 billion the amount of taxes on our employers during the worst economy, some will say, since the Great Depression. It will cause our wage earners around the country to realize an additional $75 billion in wage income.
I take the fiscal condition of this country very seriously. I find it very hard to believe, though, that anyone--a Member of this body--would desire to pass a national health care law that is paid for on the backs of our hourly workers, those who can least afford to absorb lower wages, fewer hours, and perhaps losing their job altogether.
I think that is essentially the argument I hear from the other side when I hear the $75 billion figure put forward.
With that, Mr. Speaker, I yield 3 minutes to the gentleman from Florida (Mr. Buchanan), a distinguished member of the Ways and Means Committee.
Mr. Speaker, I yield myself such time as I may consume.
I know my good colleague spoke with a great deal of sincerity and earnestness when he talked about pay-fors.
It is worth noting, once again, that the attempt to pay for this Affordable Care Act--ObamaCare, as it is popularly known--on the backs of our hourly workers strikes me as unconscionable and something that none of us ought to be contemplating, which is why this is a bipartisan effort.
Mr. Speaker, I now yield 3 minutes to the gentleman from California (Mr. McCarthy), the distinguished majority whip.
Mr. Speaker, I yield 1 minute to the gentleman from Virginia (Mr. Cantor), the House majority leader.
Mr. Speaker, I yield 2 minutes to the gentleman from Minnesota (Mr. Paulsen), a distinguished member of the Committee on Ways and Means.
Mr. Speaker, I yield myself such time as I may consume.
I would like to also indicate the fact that I, too, have read the Congressional Budget Office's estimate of this legislation. They indicate that $75 billion in wages will be lost as a result of the Affordable Care Act if something like the Save American Workers Act isn't implemented.
So, effectively, I hear some of my colleagues on the other side of the aisle making the case that we ought to be funding the Affordable Care Act essentially on the backs of these hourly workers, and I don't think that is a position anyone wants to find themselves in.
Mr. Speaker, I yield 2 minutes to the gentleman from Arizona (Mr. Salmon).
Mr. Speaker, I cannot believe what I just heard. I heard that individual cases ought not be cited, that that is somehow off limits.
Mr. Speaker, one of my colleagues just cited the example of his son, lost his insurance despite the promises of this bill during campaign season. He lost his doctor. He saw his insurance premiums and copays go up. These are real lives we are talking about. These are real hours and real wages that we are trying to remedy. This is a real 40-hour workweek that people depend upon.
Then to cite the Statement of Administration Policy as somehow being more authoritative than these personal examples I find, frankly, a bit off-putting.
With that, Mr. Speaker, I yield 4 minutes to the distinguished gentleman from Minnesota (Mr. Kline), the chairman of the Education and the Workforce Committee.
Mr. Speaker, I yield 2 minutes to the gentleman from Tennessee (Mr. Roe), a member of the Education and Workforce Committee.
Mr. Speaker, I would like to acknowledge that to get a bill this far in the legislative process requires the work of a lot of people: my own staff within my office, the committee staff, and my fellow colleagues who are willing to provide a consultative role, constructive advice, and a very strong leadership role.
So, with that, I am very happy to yield 2 minutes to the distinguished gentleman from Michigan, Tim Walberg, who helped us introduce this bill. He is a member of the Education and the Workforce Committee.
We have six speakers on this side.
Mr. Speaker, I would like to include in the Record a letter of support for the Save American Workers Act, the bipartisan bill, by the National Restaurant Association.
Mr. Speaker, I also now yield 2 minutes to the distinguished gentleman from South Carolina (Mr. Wilson), a member of the Education and the Workforce Committee.
National Restaurant Association,
Washington, DC, April 1, 2014.
Dear Representative: On behalf of the National Restaurant
Association, the leading trade association representing the
restaurant and foodservice industry, I write to urge you to
vote YES in favor of H.R. 2575, the ``Save American Workers
Act,'' when it is considered on the House floor this week.
The National Restaurant Association may consider any votes
on, or related to, such legislation in our annual ``How They
Voted'' legislative scorecard.
H.R. 2575 would reinstate the historic definition of full-
time as working 40 hours per week. The law's definition of
full-time set at 30 hours could have lasting impacts on the
labor market, far beyond the Affordable Care Act, with the
unintended consequence of potentially limiting hours for
workers who do not intend to rely on their employer for their
insurance needs.
One reason so many Americans are drawn to restaurant and
foodservice industry jobs is the flexibility to build a work
schedule or change hours to suit their personal needs.
Generally, most restaurant operators have classified
positions as salaried and hourly, not full- or part-time.
Previously, hourly workers were able to take on extra shifts
as available and as they chose to work. However, under this
law, there is now a bright line as to who is considered full-
time and who is considered part-time. As a result, the
flexibility so many enjoy and seek out in working for the
industry may become harder to find.
In its analysis of the legislation, the Congressional
Budget Office (CBO) acknowledged employers' commitment to
offering coverage to employees and projects that only a small
percentage of employers would either reassign or reduce hours
of employees who work more than 40 hours per week. More than
156 million people would continue to be covered by employer-
sponsored plans, underscoring the CBO' s conclusion that
``most of the affected employers would continue to offer
coverage because most employers construct compensation
packages to attract the best available workers at the lowest
possible cost.''
Aligning the law's definition of full-time employee status
with current levels used by restaurant and foodservice
operators would help avoid any unnecessary disruptions to
employees' wages and hours, and would provide significant
relief to employers. The National Restaurant Association
supports H.R. 2575 and encourages you to vote YES when it is
considered on the House floor.
Sincerely,
Scott DeFife,
Executive Vice President,
Policy and Government Affairs.
Mr. Speaker, I submit for the Record a letter of support from the International Franchise Association for this bill, and I now yield 2 minutes to the gentleman from Indiana (Mr. Bucshon), a member of the Education and Workforce Committee.
International
Franchise Association,
Washington, DC, February 3, 2013.
Dear Representative: On behalf of the International
Franchise Association, I write today to urge you to support
H.R. 2575, the Save American Workers Act, sponsored by Rep.
Todd Young (R-IN). This legislation will change the
definition of a full-time employee in the Affordable Care Act
(ACA) to 40
hours, the definition that employers have traditionally used
to manage their workforce, and will help small businesses
better adjust to the ACA's employer mandate.
For decades, employers have used the 40-hour work week as a
standard for workforce management. The ACA's provision
requiring employers to provide coverage to full-time
employees, and defining full-time as 30-hours, will cause
many employers to simply manage their part-time employees to
fewer hours. Data from a recent Public Opinion Strategies
survey commissioned by the IFA and the U.S. Chamber of
Commerce shows that 31 percent of franchises and 12 percent
of non-franchised businesses have already reduced worker
hours to lower costs, a full year before the employer mandate
is set to take effect. Not only has the employer mandate
discouraged job creation and business expansion, it has also
damaged existing jobs by including a misguided statutory
requirement that discarded more than a half-century of
established labor policy.
The employer mandate will hurt American workers in many
ways, but one of the most devastating effects of the mandate
is that fewer workers will be offered health insurance, and
employees will be less able to afford their own coverage when
working fewer hours. Allowing employers to manage their
workers to the traditional 40-hour work week will give
employees more flexibility and eliminate the need to revamp
longstanding employer personnel policies.
IFA urges you to support the Save American Workers Act.
This is a common-sense effort to a problem we know is only
going to get worse. The passing of this bill would provide
much-needed relief and flexibility for employers and
employees by avoiding the worst effects of the employer
mandate.
While this measure will not make the Affordable Care Act
completely workable for the 825,000 franchise locations
nationwide or the 9 million workers they employ, it will help
both employers and workers better absorb the impact of the
employer mandate.
Sincerely,
Stephen J. Caldeira,
President & Chief Executive Officer,
International Franchise Association.
Mr. Speaker, it is clear that this bill, the Affordable Care Act that the President calls ObamaCare, clearly would not insure every American in the country.
Dropping somebody from 39 hours down to 29 hours is effectively a loss of 10 hours of work per week. Over the course of a month, that is the loss of an entire week's work of wages.
For the life of me, I can't understand why the very same individuals who embraced all of the three dozen or so administrative changes to this law without hesitation will not work together in a bipartisan fashion because this is a bipartisan bill to restore the hours and income of those who need it most during the worst economy since the Great Depression.
With that, I am proud to yield 2 minutes to the gentleman from New Jersey (Mr. Lance), a member of the Energy and Commerce Committee.
Mr. Speaker, I submit for the record a letter of support for the Save American Workers Act from the National Grocers Association on behalf of their members and on behalf of their workers, and I yield 2 minutes to the gentleman from Pennsylvania (Mr. Rothfus).
National Grocers Association,
Arlington, VA, March 31, 2014.
Hon. John Boehner,
Speaker, Washington, DC.
Hon. Eric Cantor,
Majority Leader, Washington, DC.
Hon. Nancy Pelosi,
Democratic Leader, Washington, DC.
Hon. Steny Hoyer,
Democratic Whip, Washington, DC.
Dear Speaker Boehner, Leader Pelosi, Leader Cantor, and
Representative Hoyer: The National Grocers Association (NGA)
supports H.R. 2575, the Save American Workers Act (SAW), a
bill introduced by Representative Todd Young (R-IN) and
championed by Representative Dan Lipinski (D-IL). The bill
has broad support in the House, with 210 bipartisan co-
sponsors. NGA strongly encourages the House to pass the bill
with bipartisan support during the vote scheduled for the
week of March 31. We commend Majority Leader Cantor for
bringing H.R. 2575 to the Floor for what will hopefully be an
overwhelming vote in support of the bill.
H.R. 2575 addresses one of the most problematic provisions
of the Affordable Care Act (ACA) by amending the definition
of a full-time employee, which the ACA currently defines as
those averaging 30 hours a week. Left unchanged, this
provision will have far reaching consequences on the
independent supermarket industry. Simply put, 30 hours is not
full-time and requiring employers to meet this new definition
is one of the most significant challenges of the law,
jeopardizing coverage for our true full-time workforce. The
SAW Act seeks to amend this problematic provision by defining
a full-time employee as those averaging 40 hours a week and
treating full-time equivalents as full-time employees for the
purposes of determining whether an employer is an applicable
large employer. This is a win-win for both American employers
and our nation's workforce.
Independent grocers face complex challenges in implementing
the law all while operating on a profit margin of around 1
percent. They are committed to their workers, and 92% of
independent grocers already provide health benefits to full-
time employees. It is important that Congress work in a
bipartisan manner to provide employers with important reforms
such as the SAW Act before irreversible changes to the US job
market occur. Maintaining the full-time level many employers
use today is something both sides of the debate can agree
would be better for job preservation and employee coverage.
Reforms such as the SAW Act are vital to our businesses and
to our goal of providing quality benefits and available hours
to our employees. Independent retailers and wholesalers have
a significant economic impact across nearly every community
in America. Our industry is accountable for close to 1
percent of the nation's overall economy and is responsible
for generating over $131 billion in sales, 944,000 jobs, $30
billion in wages, and $27 billion in tax revenue. We are
proud that the communities we serve are also the
neighborhoods we live in.
Thank you for your support of this important issue. NGA
looks forward to continuing to work with Congress to address
this issue before the employer mandate is implemented in
2015. This is a critical issue for NGA and our member
companies, and we will be key voting this vote and including
it on our 2014 Legislative Scorecard. We remain appreciative
of the reforms Congress has already made to amend the ACA to
make the law workable for both employers and the American
workforce.
Sincerely,
Peter J. Larkin,
President and CEO.
Mr. Speaker, I yield 1 minute to the gentleman from Pennsylvania (Mr. Fitzpatrick).
Mr. Speaker, I submit for the Record letters of support for the Save American Workers Act from The Associated General Contractors of America on behalf of their workers and their members, and also a letter by the National Franchisee Association on behalf of their members and workers, and I yield 1 minute to the distinguished gentleman from Indiana (Mr. Stutzman), my colleague.
The Associated General
Contractors of America,
Arlington, VA, February 3, 2014.
Re Support H.R. 2575, the Save American Workers Act of 2013
Hon. Dave Camp,
House of Representatives,
Washington, DC.
Dear Chairman Camp: On behalf of the Associated General
Contractors of America (AGC), I am writing in support of H.R.
2575, the Save American Workers Act of 2013. This act would
repeal the 30-hour definition of ``full-time employment'' in
the Affordable Care Act (ACA) by replacing it with the more
traditional 40-hour definition.
The construction industry is typically project-based,
transitory and seasonal, which distinguishes it from other
professional industries with more predictable hours. As a
result, many construction employers rely on part-time,
seasonal and variable-hour employees. In addition, the
construction industry consists of many smaller employers with
limited human resource and administrative staff. These two
issues alone add layers of difficulty for a construction firm
that is required to use the complex formulas in the ACA to
determine whether or not it is considered a large employer
under the law.
Despite the one-year delay of the reporting and enforcement
provisions of the ACA, the law continues to add layers of
administrative burdens for employers, while other regulations
are yet to be issued. Replacing the definition of a full-time
employee to the more commonly accepted 40 hours per week
will, at the very least, reduce some of the complexity
associated with the ACA.
AGC hopes you will support H.R. 2575 and provide some
relief for construction employers across the country.
Sincerely,
Jeffrey D. Shoaf,
Senior Executive Director,
Government Affairs.