Employers all across America took a collective sigh of relief last week when the Obama administration announced that the employer mandate portion of the Affordable Care Act (ACA) would be postponed until 2015.  But the decision could leave some recruiters wondering how this will affect their firms, many of which stood to benefit from the mandate.

The employer mandate was to require employers with 50 or more employees to provide healthcare insurance to those employees by January 1, 2014, and it also came with a number of reporting requirements.  This mandate was a mixed blessing for recruiters.

For larger recruiting firms, it presented a challenge, as they were at risk of rising above the 50-employee threshold and having to provide insurance to their contractors.  But for most recruiters, it provided an opportunity to get more contract staffing business, as more companies turned to contractors to stay below the 50-employee threshold.

But now, according to a blog on the U.S. Department of Treasury website by Assistant Secretary for Tax Policy Mark Mazur, the reporting requirements under the employer mandate have been postponed until 2015.  That means the government will not be able to determine which employers are not providing the required coverage and cannot assess penalties, so the requirement to provide insurance is effectively also postponed until 2015.

So where does this leave recruiters?  Well, if you are a large firm that would fall under the employer mandate, you technically don’t have to provide insurance until 2015.  However, Mazur urged employers to voluntarily implement the reporting requirements in 2014 to prepare themselves for 2015.  Also, the delay does not relieve you of the obligation to notify employees about the existence of healthcare exchanges, or “The Marketplace.”  You must still provide the required notice by October 1, 2013.

For recruiters who are not subject to the employer mandate, but were hoping to benefit from it, stay the course.  You should still discuss the healthcare reform law with clients and the eventual impact it will have on their costs and administrative burden.

There is no indication at this time that the employer mandate will be repealed, so they can’t lose anything by preparing now.  In fact, they can immediately start reaping the other benefits of contract staffing: workforce flexibility, reduced legal liability, the ability to “try-before-they-buy” through contract-to-direct arrangements, etc.

The bottom line is that ALL recruiters should stay on top of this law and the impact it could have on their clients.  Companies often look to recruiters as employment experts and may turn to you for advice on how to best navigate the law.

(Editor’s note: This article is for informational purposes only and should NOT be considered legal advice.)

First the good news: the economy is growing and companies are adding jobs.

The bad news?  The growth is slower than everyone would like and has slowed since the beginning of the year.

Why?  Well, as ADP CFO Jan Siegmund explained in an interview with Fortune magazine Editor-At-Large Geoff Colvin, small businesses in particular are still scared to hire due to a number of economic factors.

“Since the beginning of the year, we believe that potentially the tax rate changes had an impact and anticipation of the healthcare reform may impact hiring decisions, as well as the reemergence of payroll taxes,” Siegmund said.

Hiring appears to be particularly slow for companies in the 30 to 50 employee range, he added.  This is most likely due to the employer mandate of the healthcare reform law known as the Affordable Care Act (ACA) or Obamacare.

In 2015 (recently pushed back from 2014), the employer mandate will require employers with 50 or more full-time or full-time equivalent employees to provide healthcare insurance to those employees.  Employers who are close to the 50-employee threshold may choose not to hire to avoid being subject to the employer mandate, Siegmund said.

This could be bad for recruiters who depend on hiring for their livelihoods.  Or it could create an opportunity for them to position themselves as a strategic partner for their clients.  Simply not hiring to avoid Obamacare is not going to be a good strategy for companies trying to grow.

Recruiters can provide a viable solution.  You can provide contractors who are W-2 employees of a contract staffing back-office.

That way, small companies can get the help they need to continue growing without being subject to the employer mandate.  As the employer for the contractors, the back-office assumes all of the employment responsibilities, including Obamacare compliance.

To get started, simply let your clients know that you can provide contractors and align yourself with

New York City has become the latest area to pass a law banning what has been called “unemployment discrimination.”

So just what is unemployment discrimination?  It refers to denying candidates employment based solely on the fact that they are not currently employed.

It’s no secret that companies have probably always preferred actively employed candidates, but some companies took it a step further in the wake of the recession by stating in job postings that unemployed candidates would NOT be considered.

The practice had people crying foul because many workers on the employment lines were victims of the recession’s mass layoffs and were not necessarily poor performers.

As a result, three states have passed laws against unemployment discrimination.  In general, these laws prohibit companies from posting ads stating that current employment is a job requirement or that unemployed candidates won’t be considered.

New York City has become the first city to pass such a law, which took effect on June 11.  The law makes it illegal to base employment decisions (hiring, compensation, terms, etc.) on a person’s employment status.  According to the Associated Press, NYC’s law is the most far-reaching of the unemployment discrimination laws, since it is the only one that allows applicants to sue for damages.

While it may not be spelled out in writing, many companies have a strong preference for currently employed candidates.  They might even go as far as to tell recruiters not to present any unemployed candidates.

Recruiters should make clients aware of the laws against unemployment discrimination and of the drawbacks of arbitrarily discounting the unemployed.

Even if it’s not illegal where your clients do business, overlooking candidates based solely on their employment status is not the best business strategy.  There are a number of reasons a candidate could be laid off that have nothing to do with their quality of work.

If you have a candidate you feel strongly about, but who is being overlooked due to their employment status, you may want to consider offering that candidate on a contract-to-direct basis.  This allows clients to “try-before-they-buy.”

If the candidate doesn’t work out, they can simply end the contract and try someone else.  But if they have found a great worker, they can extend the direct hire offer, and in most cases

Think you don’t have to worry about healthcare reform because you don’t have 50 or more employees? Think again!

Most of the hype about the Affordable Care Act (ACA), the healthcare reform law better known as Obamacare, has been surrounding the employer mandate.  Employers with 50 or more employees will have to provide affordable health coverage to those employees by 2014.

If you have contractors who are on your payroll, they count towards your total employee count.  Many recruiters, even those who employ some contractors, won’t get anywhere near this 50-employee threshold.  But that doesn’t mean they are out of the woods when it comes to Obamacare.

There are administrative tasks tied to the ACA, even for the smallest of employers.  For example, even if you only have a couple of employees (in-house, contractors, or a combination), you will have to provide those employees with a notice about the healthcare exchange, which has now been dubbed “The Marketplace.”

The Marketplace is supposed to provide individuals with a place where they can compare and select healthcare plans.  Depending upon their income, they may qualify for premium tax credits to reduce the cost of the coverage they select.

Any employer who is subject to the Fair Labor Standards Act (FLSA), which is almost EVERY employer, must provide a notice to employees letting them know that the Marketplace will be available starting January 1, 2014.

The notice must let them know what services the Marketplace provides and how to contact it.  It must also inform them that they may be eligible for a premium tax credit and that they may lose the employer contribution (if applicable) if they choose to purchase their insurance through the Marketplace.  You have to provide this notice even if you do not offer insurance.

On October 1, 2013, employers must begin providing this notice to new employees at the time they are hired.  All existing employees must receive the notice by October 1, 2013.  For details on how to implement this, the Department of Labor has provided a Technical Release.

Very small firms and companies may have other responsibilities under Obamacare, as well, especially if they offer health insurance.  For instance, the health reform law mandates some changes to the COBRA notices employers send to plan participants who lose their coverage.  The law also has certain reporting requirements for employers who offer health insurance, regardless of how many people they employ.

For these reasons alone, it’s important that recruiters don’t ignore Obamacare.  Be sure that you are aware of your responsibilities based on the number of employees you have, and make sure you educate your smaller clients about these provisions, as well.

Editor’s note: This article is for informational purposes only and should NOT be considered legal advice.

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