With temp workers projected to make up over half of the entire workforce in the U.S. by 2020, it’s never too soon to start getting familiar with all of the legal requirements they entail. One major factor with temp workers is now the Affordable Care Act (ACA) – passed in 2014, it states that employers may be required to offer health care coverage to all workers who work more than 30 hours a week. Since temporary employment is transient by nature, the ACA requirements can seem like a legal gray area. So what does the ACA mean for you and your temp workers?
- Hours matter more than ever.
You’ll need to keep close tabs on your temp workers’ hours – even a small overage can put you in violation of the ACA. As an employer, you’re required to keep records that show the number of hours worked by your temp workers. This is essential because the IRS can implement fines on a monthly basis – so if you bring on a part-time temp worker for a month-long assignment and they are found to have worked 120 hours in that month without being offered health care coverage, you may be in violation of the ACA. Therefore, it’s time to implement a record-keeping system so that a few extra hours here and there in a day or week don’t put your part-time temps past the limit.
- Timing of staff changes will be watched closely.
The government is on the lookout for employers who try to “game the system” of the ACA – those who revolve temp workers by letting them go just before they reach the hourly threshold of requiring health care coverage, and then bring them back shortly after. You’ll need to be able to show that when you make temp staffing changes, it’s to actually meet your workplace needs. Avoid suspicion by documenting your temporary employee needs upfront.
- A trusted staffing firm is essential.
A respected and experienced staffing agency has always been important for handling the hiring of temp workers, but under the ACA, employers may be considered equally responsible if the staffing agencies they use do not follow ACA guidelines. Only work with staffing firms that have proven themselves to have the legal knowledge and the ability to follow protocol – otherwise, you could be on the hook for their incompetence (even if you don’t know about it).
The draw of utilizing temporary staffing is to not have to deal with all of the legal employment requirements. Delegate the work by using an experienced staffing firm like PrideStaff Akron to develop and implement your temp worker strategy while meeting federal requirements of the ACA. Contact PrideStaff Akron today to learn more about the client services we offer.