Affordable Care Act Increases Hiring through Staffing Agencies

Affordable Care Act Increases Hiring through Staffing AgenciesMichigan has seen an increase in employment by temporary staffing agencies over the last few years. According to University of Michigan economist Don Grimes, 36% of the jobs which were created in that state from 2009 through 2013 were attributable to hiring by temporary staffing agencies and self-employment. Other states are experiencing similar increases in employment through staffing firms.

The implementation of the Affordable Care Act is increasing this hiring trend, which had already existed previously. This is the first year that companies are required to provide health coverage to full-time workers, if the businesses employ at least 50 people. Companies are often able to avoid this requirement by acquiring temporary employees through a staffing agency. The new law also makes it more feasible for workers to obtain coverage themselves, so they do not need to rely on their employer as heavily as in the past to get insured.
The Affordable Care Act states that employers are not required to provide insurance if an employee has not been working full-time within the last year, which is one of the reasons why hiring people on a temporary or part-time basis is expected to become more popular.

Since more employers are now seeking to fill positions on a temporary basis, your staffing firm may be seeing an increase in demand. However, be careful about marketing your services as a way for clients to avoid providing health care – after all, someone is paying for that insurance, and it is probably you. You should be investigating your requirements and options when it comes to providing coverage, because there are some circumstances in which you are not responsible.

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