For this and for businesses with 50-100 employees, the answer is yes. Buried deep within the IRS regulations pertaining to Obamacare, section 4980H of the IRS Code seemingly tells business to affirm the reasons why they are reducing their workforces to qualify for transitive relief from Obamacare. Many businesses are cutting jobs to avoid having to comply with the employer mandate, here though, these business are being told they cannot reduce the sizes of their staff without having a "bona-fide business reason" for doing so. If they somehow fail to meet this requirement or provide a sufficient reason to the IRS, they could be seemingly slapped with perjury charges.
This law is an overreach, simply telling employers they cannot drop below the 50 employer threshold to avoid the law and qualify for an exemption is the creation of a crime, something a neither a sitting President nor any other branch of government (except for the legislative) may do.
(1) Limited Workforce Size. The employer must employ on average at least 50 full-time employees (including full-time equivalents) but fewer than 100 full-time employees (including full-time equivalents) on business days during 2014. (Employers with fewer than 50 full-time employees (including full-time equivalents) on business days during the previous year are not subject to the Employer Shared Responsibility provisions.) The number of full-time employees (including full-time equivalents) is determined in accordance with the otherwise applicable rules in the final regulations for determining status as an applicable large employer.
(2) Maintenance of Workforce and Aggregate Hours of Service. During the period beginning on Febr. 9, 2014 and ending on Dec. 31, 2014, the employer may not reduce the size of its workforce or the overall hours of service of its employees in order to qualify for the transition relief. However, an employer that reduces workforce size or overall hours of service for bona fide business reasons is still eligible for the relief.
[...
Questions and Answers on Employer Shared Responsibility Provisions Under the Affordable Care Act
https://s3.amazonaws.com/public-inspection.federalregister.gov/2014-03082.pdf pp. 123-25
I tell you now: this is a pure act of desperation on the Obama Administration's part. Government has no right micromanaging the affairs of private businesses. So, is the Government telling you how to run your business?
B]
here is the law from the affordable care act you decided whats being done here [/B]
Part III – Administrative, Procedural, and Miscellaneous
Request for Comments on Shared Responsibility for Employers Regarding Health
Coverage (Section 4980H)
Notice 2011-36 --
Many provisions of the Patient Protection and Affordable Care Act (Affordable
Care Act) that are designed to promote expanded, affordable health coverage become
effective beginning in 2014. These include provisions for shared responsibility for
employers regarding health coverage, coverage to be offered by State Exchanges,
premium tax credits to assist individuals in purchasing coverage through State
Exchanges, and related provisions. As part of the process of planning for
implementation of these provisions, the Department of the Treasury (Treasury), the
Department of Labor (DOL) and the Department of Health and Human Services (HHS)
(collectively, the three Departments) are working in concert to develop regulations and
other administrative guidance that will respond to questions and assist stakeholders
with implementation.
I. PURPOSE
This request for comments is intended to initiate and inform the process of
developing regulatory guidance regarding the shared employer responsibility provisions
in § 4980H of the Internal Revenue Code (Code). Those provisions, which apply for
months beginning after December 31, 2013, refer to certain standards relating to the
offering of health coverage by employers to their full-time employees. Under § 4980H,
an “applicable large employer” that does not meet those standards may be liable for an
2
“assessable payment” if at least one of its full-time employees is certified as having
enrolled in health insurance through a State Exchange with respect to which a premium
tax credit under § 36B of the Code, a cost-sharing reduction under § 1402 of the
Affordable Care Act, or an advance payment of such credit or reduction under § 1412 of
the Affordable Care Act is allowed or paid.
This notice does not constitute guidance. Instead, it describes potential
approaches, which could be incorporated in future proposed regulations, to certain
discrete issues under § 4980H, particularly the issue of who is a full-time employee, and
invites comments on these approaches. Treasury and the Internal Revenue Service
(IRS) intend to publish such proposed regulations both on the § 4980H issues
addressed in this notice and on a broader set of issues under § 4980H. This notice also
invites comments on the interpretation of the 90-day limitation on waiting periods for
group health plans and health insurance issuers offering group health insurance
coverage under § 2708 of the Public Health Service (PHS) Act, and on how the
interpretations of that section and of § 4980H should be coordinated. The three
Departments are coordinating their efforts in developing the regulations and other
guidance on the shared employer responsibility provisions (Treasury/IRS guidance), the
90-day limitation on waiting periods (three Department guidance), automatic enrollment
for employees of large employers (DOL guidance),1 and other Affordable Care Act
provisions.
1 Section 18A of the Fair Labor Standards Act (FLSA), as added by § 1511 of the Affordable Care Act,
requires employers subject to the FLSA that have more than 200 full-time employees and that offer
enrollment in one or more health benefit plans to automatically enroll new full-time employees in one of
the plans offered (subject to any waiting period authorized by law), and to continue the enrollment of
current employees in the employer’s plan. Under FLSA § 18A, which is enforced by the DOL, any
automatic enrollment program must include adequate notice and the opportunity to opt out of any
