Thomson Reuters News & Insight quotes Nick Reiter on healthcare compliance in the restaurant industry

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Venable associate Nick Reiter was quoted in a March 14, 2013 Thomson Reuters News & Insight article restaurant industry compliance with the Affordable Care Act (ACA). The restaurant industry is facing numerous challenges complying with the ACA due to the industry’s high percentage of seasonal and part-time employees, complicated corporate relationships between subsidiary restaurants and their parent operations, and the practice of underreporting tips as part of income.

During the annual New York Restaurant Show on March 4, Reiter and Venable partner Mike Volpe hosted a seminar to help explain how the restaurant industry can best comply with the healthcare law. One provision of the ACA states that the premium cost of health insurance cannot exceed 9.5 percent of an individual’s household income. “Since waiters often underreport cash tips they receive, it is difficult for restaurant operators to calculate what constitutes 9.5 percent,” Reiter said. Reiter also said he advises clients in the restaurant industry to think strategically about workforce scheduling, adding they “can dictate the work schedule of their employees with much more ease…and dictate what percentage of their staff is part-time and full-time.”