Capitola Offers Benefits Under New Law

The Capitola City Council looked at the numbers and decided it just made more sense to pay one of the City's employees and extra $2,800, rather than give the money to the federal government.

The City Council voted at its May 9 meeting to change one of its hourly recreation department assistant positions to a full-time post with medical benefits. The cost is an extra $2,800 annually.

The City was facing a potential $3,000 fine under the U.S. Affordable Care Act, which requires employees who work 30 hours or moree be offered health benefits.

"There is only one singular employee in the whole city who comes close to the threshold," Councilmember Michael Termini said. "Rather than pay a penalty or do some shady business, we chose to bump up this person's hours and qualify the position for benefits."

Termini noted that with the increased hours, the employee would be able to do more work.