A move this week by Fresno State's auxiliary corporation appears to be the first by one of the central San Joaquin Valley's major employers to deal with expected consequences of national health reform.

The California State University Fresno Association Inc. said it may cut hours at the end of June for part-time employees now working at least 30 hours a week to avoid providing health benefits. About 40 of the association's 440 part-time employees would be affected.

"We're having to make sure we can manage this legislation and still be a fiscally viable operation," said Debbie Astone, associate vice president for auxiliary operations. The association hasn't finalized a decision to cut hours, Astone said, "but we're having to plan and prepare."

The CSU Fresno Association, like many businesses, has provided insurance only for full-time employees who work at least 35 hours weekly. But beginning in January, employers with 50 or more employees must offer insurance to employees working 30 hours or more. Businesses face a penalty of $2,000 or more for each worker who is not offered insurance.

How many employers will cut workers' hours in reaction to the Affordable Care Act -- and how many employees could see reduced hours -- is uncertain and could depend on the type of business.

Nationwide, employees working 30 to 34 hours weekly made up 7.1% of the labor force in January, according to the federal Bureau of Labor Statistics.

Fresno restaurateur David Fansler said part-timers' hours will be on the chopping block nationwide. "There's absolutely no doubt that that is going to happen," he said.

Restaurants, for example, employ a lot of people, he said, and it would be costly to provide insurance to people working 30 to 34 hours a week who now are considered part time.

Fansler said he hasn't decided yet how he will provide coverage under the Affordable Health Care rule to his 200 employees. He doesn't have enough information to determine whether it will cost more to take the penalty or to comply with the health reform law: "It's damn confusing."

Employees not provided coverage would have to turn to Covered California, the state's health benefits exchange, to find affordable health insurance or face a penalty for not having health insurance.

Al Smith, head of the Fresno Chamber of Commerce, said many employers are waiting for more information before they make plans. "Until they get a clearer picture of what they can expect, they're going to tread water," he said. But Smith said employers will have to make adjustments to avoid higher employee benefit costs -- "they will cut hours and cut employees and any other way they can to soften the blow."

Employers in some industries, however, may not have a choice but to offer insurance to part-time employees. Farmers are unlikely to reduce worker hours, said Clare Marie Einsmann, executive vice president and counsel for United Ag, an agricultural trade association based in Irvine with an office in Fresno.

"Usually agricultural employees are working more than a 40-hour week, especially during times when you're doing planting and when you're doing harvesting, so to try and reduce their hours is really not a viable option," Einsmann said.

Most of the farmers she's spoken to said they will be providing insurance to more employees than before, she said.

Some employers are looking at options other than cutting hours or employees, such as asking employees to contribute more to the cost of health care premiums.

Roy Oken, president of Wonder Valley Ranch Resort outside Sanger, said reducing hours and laying off employees are not good choices for his business. He employs about 50 people, which puts him in the large employer category that must provide insurance or pay a fee.

"I think we would just have a bunch of unhappy staff to change everyone's hours," he said. "We're not going to fire people to go under the 50. We're in the people business, and you don't want to have unhappy staff working with your guests."

Companies also could decide to hire more employees -- but all at less than 30 hours a week -- to maintain businesses where part-time employees now have longer hours.

The CSU Fresno Association could hire more part-timers, Astone said. The association, a nonprofit auxiliary, oversees the university bookstore, dining services, housing, student recreation center and student union.

Most of the association's employees are students who work 20 hours a week, she said. How many more students could be needed to compensate for fewer 30-hour employees is part of the analysis being done now, she said.

Astone said the association staff members are "trying to make sure we understand and are interpreting the law, and budgetarily that we build any of the cost into our budget."

On the Web

-- Employer responsibility: The Henry J. Kaiser Family Foundation explains the possible penalties for large employers that don't offer affordable coverage under the Affordable Care Act.

-- Covered California: The state's health benefits exchange includes an individual cost calculator.