Staffing Resources

How ACA Affects the Temporary Workforce in GA

May 22nd, 2014

Many of you might be wondering if the Affordable Care Act (ACA) will affect the temporary workforce in Georgia this coming year? Well, the answer is that it depends on each individual situation. When the ACA went into effect in 2010 across the country, it required companies to provide their employees with various health care insurance options. The act was created to help the country become healthier and improve their wellness by providing those who have never been offered health coverage the chance to join a program.

Interestingly enough, the ACA may have other effects on temporary jobs and the companies that use temp workers. Here’s what experts believe to be the impact that the ACA will have on the temporary workforce in GA and other states around the nation.

2014 Hiring Trends

One of the very first worries with the activation of the ACA was that it would cause companies to hire less full-time and temporary workers. All companies with 50 or more full-time employees are legally obligated to take part in the ACA, which means that they must provide access to health insurance coverage. One trend that developed early on was that companies began offering more part-time work in order to avoid offering full-time employees health coverage. Others have increasingly turned to temporary workers to offset the costs of providing group health benefits.

Are Temp Workers Hurt by the ACA?

So, have temporary workers in GA been hurt by the ACA since its inception back in 2010? Many full-time temporary workers do receive health insurance coverage, but they acquire it through the staffing agency that placed them in their job. So long as they work full-time hours, the staffing agency will provide them with health insurance coverage options.

Temporary workers are hurt by the ACA when they are offered permanent work by the company they are performing temporary work at, but the hourly rate is lower. When this occurs, the company can avoid offering the employee health insurance coverage options. When companies do this, they are treading very shallow water and could find themselves in a lot of hot water.

Temp Workers Gaining Employment Opportunities

It seems as though temporary workers are being hired at a stronger rate than in previous years because of the enactment of the ACA.

This is an increase of two percent over last year and 40 percent of companies surveyed said that they planned to switch their temporary workers to permanent workers sometime in 2014. From the same survey, 54 percent of companies surveyed said that they are planning to hire the same amount of temporary workers or more in 2014. This also goes for companies hiring full-time workers this year.

It seems as though the ACA affects each region differently, with the temporary workforce in GA seeing a benefit from its activation. Staffing Resources, an Atlanta GA Staffing Agency, enjoys sharing the news and updates for the region. We can help your business to maintain a skilled workforce while controlling costs. If you are looking for temp workers in Atlanta GA, contact us today.

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