HomeMy WebLinkAbout05. Update on "Pay or Play"May 9, 2016
Central Contra Costa Sanitary District
TO: ADMINISTRATION COMMITTEE
VIA: ROGER S. BAILEY, GENERAL MANAGER e$5"
ANN SASAKI, DEPUTY GENERAL MANAGER
FROM: TEJI O'MALLEY, HUMAN RESOURCES MANAGER_ j,Q
SUBJECT: UPDATE ON EMPLOYER SHARED RESPONSBILITY
(AKA "PAY OR PLAY")
During the Administration Committee meeting on March 28, 2016, staff presented
information to the Committee on the Employer Shared Responsibility Mandate, also
known as "Pay or Play," a provision of the Affordable Care Act (ACA). There was a
discussion at the meeting on the mandate and potential penalties for non-compliance,
as well as a recommendation on how to implement the mandate at the District.
In summary, the Pay or Play mandate requires that all employers must provide medical
coverage that meets the following three criteria: is affordable, has minimum value,
and is offered to substantially all (at least 95%) of their employees who work more
than 30 hours a week.
Staff had recommended that the District offer coverage to all District temporaries (co-
ops and District temporary employees), but that the full cost of the premiums be borne
by the employee(s). This recommendation would result in the least amount of financial
impact to the District.
This memo is to follow up on two items that were discussed during the meeting. Staff
was directed to determine if other agencies had internship (co-op) programs similar to
ours, the compensation rate, and if the agencies were paying for health and welfare
benefits. The table below details this information:
Agency
Castro Valley Sanitary District
Contra Costa Water District
Delta Diablo
Dublin San Ramon Services Yes
District
Fairfield -Suisun Sanitary Yes
Internship (Co-op)
Program
Yes
Yes
Yes
Hourly Rate Benefits Paid
of Pay by Agency
$17 No
$17-$21 No
$14-$16 No
$15 No
$16 No
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Central Contra Costa Sanitary District
Update on Employer Shared Responsibility (aka "Pay or Play")
Page 2 of 2
District
Napa Sanitation District Yes $13-15 No
Sausalito Marin City Sanitary Yes $12-$18 No
District
Vallejo Sanitation and Flood Yes $10 No
Control District
Oro Loma Sanitary District No n/a n/a
Silicon Valley Clean Water No n/a n/a
Authority
Union Sanitary District No n/a n/a
East Bay Municipal Utility No n/a n/a
District
Staff was also asked if the District would be able to lawfully require the co-ops to
provide proof that they have medical coverage elsewhere as a condition of employment.
After consulting with legal counsel, staff was informed that this is not recommended. By
directing future employees to provide proof of coverage elsewhere would, in essence,
violate the Pay or Play mandate. The intent of this provision of the Affordable Care Act
is to ensure that all employers provide medical coverage to all employees. By stating
that this category of employees could not work for the District unless having insurance
elsewhere would potentially put the District at risk for incurring Penalty A, which is the
penalty for not offering coverage to all employees that are eligible.
Staff will at the meeting to answer any questions or provide any clarification.