The Free Press, Mankato, MN

State, national news

March 26, 2013

Health law could boost hiring of temp workers

— 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.

"We are already getting inquiries from our client base for companies in and around 50 [employees], asking us to help them understand this legislation, and to inquire as to how we might be helpful," M. Keith Waddell, Robert Half's president, told investors on a conference call a few weeks ago. "Our response is that we can legally help them remain under 50."

The health law is also prompting larger organizations to use temp agencies. By requiring employer coverage only for those who put in at least 30 hours a week, the act appears to create an incentive for companies to do less with permanent workers and more with part-timers, which are the main focus of staffing agencies.

Manpower is talking to clients about "a more flexible labor model," where workers "might be working 29 hours a week," company chief executive Jeffrey A. Joerres told investors in January, adding: "We definitely look at it as a positive."

Text Only | Photo Reprints
State, national news
  • 9 TC Rainbow stores to close Supermarkets to lose in Cottage Grove, Shoreview, Inver Grove Heights, Apple Valley, Blaine, Bloomington, Coon Rapids, Maple Grove and Savage

    July 21, 2014

  • Accelerants fuel fire; 2 rescued ST. PAUL — Two brothers were rescued from the upper floor of a St. Paul duplex in a fire that was fueled by cylinders of gas, oxygen and other accelerants. Authorities say the two were taken to Regions Hospital where one man is in critical condition

    July 21, 2014

  • Monticello doctor dies in cycle crash Patients among those mourning Dr. Eric Lefebvre's death

    July 21, 2014

  • Precautions urged for excessive heat, humidity MINNEAPOLIS (AP) — Health officials are urging Minnesotans to take precautions in dealing with high temperatures and humidity. The National Weather Service says the humidity will make temperatures feel like 100 to 110 degrees Monday across much of M

    July 21, 2014

  • NASA names building for moonwalker Neil Armstrong NASA honored one of its most famous astronauts Monday by renaming a historic building at the Kennedy Space Center in Florida. It now bears the name of Neil Armstrong, the first man to walk on the moon when the Apollo 11 mission landed there 45 years

    July 21, 2014

  • Minnesota man loses relatives in airliner crash Drew Ryder of Willmar says victims included his brother, sister-in-law

    July 21, 2014

  • Shark sightings off Cape Cod a boon for tourism CHATHAM, Mass. (AP) — In "Jaws," the fictional mayor tried to protect the summer tourism season by keeping a lid on reports of the man-eater lurking offshore. As sightings of great white sharks mount off Cape Cod in real life, however, businesses in

    July 21, 2014

  • Dutch anger swells at treatment of Ukraine bodies THE HAGUE, Netherlands (AP) — It is no longer only grief and mourning sweeping across the Netherlands in the aftermath of the downing of Malaysia Airlines Flight 17. It is now anger. The Dutch have widely condemned the way the bodies of loved ones h

    July 21, 2014

  • Diplomacy intensifies amid mounting Gaza toll GAZA CITY, Gaza Strip (AP) — The U.N. chief and the U.S. secretary of state headed to Cairo on Monday for the highest-level attempt yet to end two weeks of Israel-Hamas fighting that has killed at least 510 Palestinians and 20 Israelis and driven ten

    July 21, 2014

  • Actor James Garner dead at age 86 Veteran film and television actor James Garner died of natural causes Saturday at the age of 86.

    July 20, 2014