Friday, February 8, 2013

What Will Happen to Part-Time Workers?

According to research from the ADP Research Institute and reported by Jeffrey Young in Huffpost's Business, employers will be more likely to reduce the hours of their part-time staff, to make sure they are nowhere near the 30 hour mandatory coverage under PPACA (Obama Care) in 2014 and beyond.  Right now only about 8% of part-time employees are enrolled in their company's health insurance plan even though many more are offered insurance.  The reason for this disparity is that most part-time employees can not afford their portion of the premium for their plan.

Overall around 150 million Americans get their benefits from an employer sponsored plan.  For the majority of the full time and highly compensated employees, they will see very little change under the health care law.  But for those hourly and lower compensated employees, they may see big changes.  Larger companies are looking to see if paying the fines will be less expenses than trying to insure those employees and they are looking at keeping the part-time employees at a reduced part-time status with little chance of earning money by working a few more hours.  We will see what ends up actually happening.

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