WASHINGTON, D.C. – This week, U.S. Senators Angus King (I-Maine) and Roy Blunt (R-Mo.) introduced the Simplifying Technical Aspects Regarding Seasonality (STARS) Act. This bipartisan legislation would clarify the definition of seasonal employment under the health care law to reduce the regulatory burden on small businesses and help them avoid costly penalties that make it harder to grow and create jobs. 

“Seasonal workers play a vital role in Maine’s tourism industry, as small businesses across the state rely on the additional help to handle the influx of visitors during summer months,” said Senator King. “These restaurants, shops, and hotels are vital to the health of our state economy, but too many are struggling with unclear bureaucratic definitions surrounding ’seasonal’ employees. This bipartisan legislation would help clarify this language, and allow more small businesses to grow, thrive, and contribute to the Maine economy.”

“As the leading advocate for America’s restaurants and their employees, the National Restaurant Association applauds Senators Blunt and King for introducing the bipartisan STARS Act, which simplifies the definition of a seasonal worker within the Affordable Care Act (ACA) allowing smaller seasonal restaurants to have clarity when complying with ACA requirements,” said Cicely Simpson, Executive Vice President, National Restaurant Association. “This legislation is vital to the success of thousands of America’s restaurants in every local community and helps them meet their seasonal workforce needs.”

The employer mandate in the health care law requires businesses with 50 or more full-time employees, or full-time equivalents, to offer health care coverage or pay a fine. Small seasonal employers in various industries across the country are unsure if they are required to comply with the mandate because different aspects of the law are based on varying definitions of “seasonal worker.” The STARS Act would define “seasonal employee” as a worker who is employed on a seasonal basis for 6 months or less during the calendar year. This uniform definition would be used by the employer when determining both business size and whether health coverage must be offered.