When it appeared that the Affordable Healthcare Act was going to become a realit

Question

When it appeared that the Affordable Healthcare Act was going to become a reality, various media outlets offered several predictions regarding how this was going to impact temporary workers. Now that the Affordable Healthcare Act has been through the courts and organizations are facing it as a reality, we can now see some of the preliminary impact of it on the use of temporary workers. In fact, one well known employment advocate, Bob Funk, was interviewed for the Oklahoman and had a rather ironic viewpoint. Thus, your assignment is to research how the Affordable Healthcare Act was predicted to impact the use of temporary workers, and whether or not preliminary indicators support or refute those expectations.

Explanation / Answer

The staffing agencies knew when the ACA went into effect, it would directly affect the industry. The act states that companies with more than 50 employees must provide insurance to their employees. Many employers viewed staffing agencies as a solution to avoid paying group health insurance.

Employees that work through a temporary agency have been presumed employees of a temporary staffing agency, hence agencies are responsible for offering appropriate coverage and determining whether it is subject to the employer mandate penalties. As they are performing services for a client organization, therefore they are responsible party for the employer mandate. Hence the preliminary indicators support that ACA would impact the use of temporary workers.

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