Companies That Give Health Care to Part-Time Employees

Walmart is cutting health care to 30,000 part-time workers.

ByABC News
October 7, 2014, 5:06 PM
Shoppers are seen outside a Wal-Mart store in Rosemead, Calif., in this Jan. 29, 2014, file photo.
Shoppers are seen outside a Wal-Mart store in Rosemead, Calif., in this Jan. 29, 2014, file photo.
Frederic J. Brown/AFP/Getty Images

— -- intro: Walmart, the nation's largest single employer, announced today it is cutting health care benefits for 30,000 part-time workers, 5 percent of its total part-time work force. But it's still possible for part-time employees who work fewer than 30 hours a week to receive employer-sponsored health care elsewhere.

Following Target's lead back in January, Walmart announced today that it will no longer offer health insurance to employees who work less than an average of 30 hours a week, starting Jan. 1.

For the unemployed or employed who hope to secure company-sponsored health care, the good news is that certain companies offer that benefit to part-timers.

quicklist: category: Membership warehouse title: Costcomedia: 14693760text:

Costco offers health care benefits, including medical, pharmacy, vision and dental, to full-time employees and part-time employees who work an average of 23 hours per week, Patrick Callans of Costco Wholesale, told ABC News. There are waiting periods for eligibility: 90 days after full-time employees are hired and 180 days for part-time employees. Of those who are eligible, about 98 percent of Costco employees are enrolled for coverage, "which we think speaks to the affordability of these offerings," Callans said.

"We have made some changes to the plans to comply with certain provisions of the Affordable Care Act, but we have no plans to make any significant cuts or reductions to benefits," Callans said. "We are proud to offer these benefit packages to Costco employees."

quicklist: category: Groceries title: Whole Foods media: 14266842text: Whole Foods Market "team members" regularly scheduled to work more than 20 hours but less than 30 hours per week are eligible for medical insurance upon hitting certain service hour thresholds. To be considered full-time employees, employees need to work at least 30 hours per week. Part-time employees are eligible to receive other benefits, including paid time off and a 20 percent store discount. Employees who voluntarily opt to participate in the "Team Member healthy discount incentive program" could receive up to an additional 10 percent store discount, according to a Whole Foods spokeswoman. Employees select their benefits package through a company-wide vote every three years.

Stock options are also granted to all employees once they have accumulated 6,000 service hours.

Whole Foods Market also offers "gainsharing" to part-time workers, which lets them earn monthly dividends, such as "labor surplus payouts" from the excess labor budget of their individual teams.

Last year's "gainsharing" sales incentive program total was $99 million while average team member payout per hour was $0.87. The average total team member payout was $2,418.49, according to Whole Foods.

quicklist: category: Coffeehousetitle: Starbucks media: 12554659text: Since 1988, Starbucks, based in Seattle, has offered "a comprehensive compensation program" that recognizes and rewards employees, or "partners," the company said.

This benefits package includes "competitive" base pay, health care for eligible full and part-time partners, with an average of 20 hours per week, and equity in the company in the form of Bean Stock.

Last year, Starbucks store and non-executive employees received over $234 million in pre-tax gains from Bean Stock, a spokeswoman told ABC News.

Starbucks also offers a 401(k) savings plan with employer match, tuition reimbursement, short-term disability, paid vacation time, and a 30 percent in-store discount.

The spokeswoman said that the premiums that employees pay are lower than those they would pay at 80 percent of other retailers. Starbucks funds approximately 70 percent of the premium costs and covers 100 percent of preventive care services, including full coverage of women's preventive health, she said.

quicklist: category: Apparel title: Lands' End media: 14805684text: Many of Lands' End part-time workers can receive benefits such as the employee discount, access to the on-site medical clinic and use of the on-site fitness center and child care center.

Lands' End, based in Dodgeville, Wis., was acquired by Sears Holdings in 2002, but completed a spin-off earlier this year.

Lands' End offers ongoing part-time employees dental, vision and life insurance benefits in addition to the employee discount, on-site medical clinic and fitness center options, according to the company, though ongoing part-time and seasonal hourly requirements differ for each department.

Seasonal employees who commit to returning the following holiday peak season receive extended benefits for the entire year, according to the company.

quicklist: category: Home improvement title: Home Depot media: 14809878text: Home Depot offers dental, vision, critical illness, back-up dependent care and disability coverage to employees who have worked at least 90 days. The company also offers "Future Builder 401(k)" plans.

Last year, Home Depot said the Affordable Care Act precluded it from offering after Dec. 31, 2013, the limited liability medical plan it had provided part-time associates before then.

Home Depot, based in Atlanta, Georgia, calls itself the world's largest home improvement specialty retailer, and has nearly 2,000 stores and more than 350,000 employees.

quicklist: category: Groceriestitle: Trader Joe'smedia: text: Starting in January 2014, in accordance with the Affordable Care Act, Trader Joe's began offering employer-sponsored health care coverage for employees who average 30 or more hours per week.

The company provides free coverage for basic dental and vision care to employees who work an average of 15 hours or more per week. Employees who work more than 15 hours per week receive $500 in their paycheck as of January 2014 to help pay for health care costs.

quicklist:category: Outdoor appareltitle: REImedia:text: Outdoor clothing and gear retailer REI offers employees averaging 20 or more hours per week medical benefits, a company spokeswoman confirmed with ABC News. REI pays the full cost for basic life and disability coverage. All employees are eligible for the company's annual incentive plan, which is based on reaching individual, department and company goals.