Obamacare Fuels Use of Temp Workers
Because they aren't covered by the law
The health-care law could prove to be a boon for temporary-staffing companies as employers outsource jobs to sidestep complex requirements for medical insurance.
But some experts say the Affordable Care Act's exceptions for temporary employees could undercut the goal of expanding coverage to more American workers.
"That could lead to an increase in part-time workers" who lack insurance, said Susan N. Houseman, an economist at the Upjohn Institute for Employment Research who studies staffing companies. "You regulate something and people will always try to find a way around the regulation."
Starting in January, employers with at least 50 workers must offer affordable coverage or pay a penalty. To stay under this limit, some are considering outsourcing jobs to specialists such as Kelly Services, Manpower, Robert Half and Randstad, whose stock prices have soared.