Another Side Effect Of ObamaCare

Real Clear Politics posted an article today about the impact of ObamaCare on the full-time job market.

The article reports:

Just recently, the Internal Revenue Service issued an 18-page, single-spaced notice explaining how to distinguish between full-time and part-time workers under the Affordable Care Act (“Obamacare”). The difference matters, because the ACA requires employers with 50 or more full-time workers to provide health insurance for those workers. At the same time, no company has to buy insurance for part-time employees, defined as those working less than 30 hours a week.

I’ll go into the details of what that means in a minutes, but stop a minute and look at what just happened. A new law about healthcare is causing the Internal Revenue Service to issue a notice explaining full-time and part-time employment. I thought ObamaCare was about healthcare.

The part of ObamaCare that this IRS notice relates to will not kick in until after the election (surprised?).

The article reports on the impact:

Employers have a huge incentive to hold workers under the 30-hour weekly threshold. The requirement to provide insurance above that acts as a steep employment tax. Companies will try to minimize the tax. The most vulnerable workers are the poorest and least skilled who can be most easily replaced and for whom insurance costs loom largest. Indeed, the adjustment has already started.

Please follow the link to the Real Clear Politics article to read the details. This is a law that needs to be repealed.

Enhanced by Zemanta