Several dozen members of Unite Here, chanting, "Si se puede," "IRS unfair," and "Health care is a human right," held a rally on Friday in New York City to protest an Affordable Care Act IRS provision that's cut health care for over 10,000 food service workers at one company.

The labor union, Unite Here, representing hotel, food service, laundry and casino gaming industries, has been hosting protests across the country to draw attention to the IRS loophole. 

Under the Affordable Care Act, the multi-national food service company Sodexo, with $25 billion in revenue and 130,000 workers, reclassified full-time jobs and, in doing so, eliminated health care coverage for tens of thousands of workers.

"Earlier this year [Sodexo] reclassified 10,000 of their employees who are still doing the exact same work on the exact same schedule, from full-time to part-time. So by simply changing the way they calculate people's hours they are denying thousands of workers access to affordable health care," said Andrew Dadko, an organizer. "Sodexo blames the ACA. Not only did they take away their health care but access to their 401k savings plan, and they took away their sick day rules. So by taking advantage of this loophole, Sodexo is denying workers basic rights."

Unite Here represents 5,000 Sodexo employees. Sodexo operates food service contracts with college campuses, hospitals, corporate sites, government agencies and museums.

Under the Affordable Care Act, companies reclassify full-time employees to be eligible for health and welfare benefits as someone who works an average of 30 hours or more per week over a 52-week period.

Prior to the ACA, the definition of a full-time employee required a person to work 30 hours per week for six or more weeks over 18 weeks. That distinction is important because college campus Sodexo employees, for instance, don't work when the campus is closed.

The IRS recognizes education workers as full-time because schools and colleges operate on a shorter schedule than other employers. But Sodexo argues the employees are not hired by the universities and schools, and are not mandated to apply the IRS definition.

Latin Post called the Treasury Department for comment, but they did not return calls before deadline.

Sodexo told Latin Post, "The issue raised in the protest is no longer directly relevant to Sodexo as last month Sodexo announced a refinement of its benefit eligibility criteria that will allow employees who average 30 hours per week when their unit is open to be credited with those hours averaged during the temporary closing of their unit. This is expected to extend benefits to an additional 5,200 employees who will be able to enroll this Fall for benefits that take effect in January 1, 2015."

Unite Here told Latin Post, "Sodexo needs to restore the benefits now, not in 6 months, so that workers have access to the benefits, including health insurance and sick days, that they need. And we continue to believe that the Sodexo loophole should be closed by the IRS to prevent other companies from abusing the ACA and so that bad actors like Sodexo cannot deprive workers of benefits they need as a way to pad their bottom lines."

As part of Friday's rally, a delegation, led by student organizer Christina Cruz-Uribe, visited the IRS offices and were directed to taxpayer assistance. Cruz-Uribe told Latin Post, "The manager said they were open to listening but the matter needed to be taken up with Congress." 

Cruz-Uribe said she told the manager, "We think you need to pass this on to your manager, Jacob E. Lew, to close the loophole," leaving a petition signed by 5,000 people and a bag of bagels, a symbolic gesture, she said, for food service workers.