The ACA is great for the staffing industry, but it’s not very good for American job creation, small business, or for workers,
Oklahoma City (PRWEB) September 23, 2013
Express Employment Professionals released a new white paper today focusing on the Affordable Care Act’s (ACA) significant effects on the American economy, with an emphasis on the new law’s impact on job creation and labor. The paper outlines three trends that have emerged as full implementation of the ACA approaches:
(1) The traditional 40-hour work week is threatened, particularly for hourly workers.
(2) “Small” businesses are trying not to become “big” businesses.
(3) The use of staffing companies is increasing.
“The ACA is great for the staffing industry, but it’s not very good for American job creation, small business, or for workers,” said Bob Funk, CEO of Express Employment Professionals, the nation’s largest privately-held staffing company, and a former chairman of the Federal Reserve Bank of Kansas City.
The white paper analyzes three trends that are already changing what it means to be gainfully employed in America.
First, the ACA mandates that employers provide health insurance for employees who work at least 30 hours a week, so employers have an incentive to rely on more part-time and fewer full-time workers.
Second, because the mandate applies only to businesses with 50 or more employees, small businesses have a new incentive not to hire additional workers, curtailing business expansion and job creation.
Third, the use of staffing companies allows businesses to utilize more workers without crossing the 50-worker threshold, so the ACA has contributed to the increased use of these companies.
“The impact of the new law goes significantly beyond the issue of how to provide health care to those who lack insurance,” Funk said. “The erosion of the 40-hour work week will have a lasting impact on the American workforce, including lost wages, lower incomes and stunted career progression. The law may already be redefining what it means to be gainfully employed in America.”
If you would like to arrange for an interview with Bob Funk, please contact Sherry Kast at (405) 717-5966.
About Robert A. “Bob” Funk
Robert A. “Bob” Funk is chairman, chief executive officer and president of Express Employment Professionals. Headquartered in Oklahoma City, the international staffing company has more than 600 franchises in the U.S., Canada and South Africa. Under his leadership, Express has put more than five million people to work worldwide. Funk served as the Chairman of the Federal Reserve Bank of Kansas City and was also the Chairman of the Conference of Chairmen of the Federal Reserve.
About Express Employment Professionals
Express Employment Professionals puts people to work. It generated more than $2.3 billion in temporary sales in 2012 and ranks as the largest privately held staffing agency in the United States. Its goal is to put more than one million people to work annually.