The far-reaching effects of the Affordable Care Act across the nation have changed the ways some businesses handle their benefits plans. Staffing firms are now under greater scrutiny to ensure they provide health insurance to their staff. Employee benefits liability insurance protects the firm’s financial assets if the firm fails to adequately communicate the benefit package.

Employee Classification

How employees are classified to receive health insurance was changed back in 2010 when the ACA was passed. Short-term temporary workers are now seen as employees. This means that while they work through the staffing agency, the staffing agency is responsible for offering health insurance, not the business they work at.

Employment Status

Many businesses have moved to hiring staff through staffing agencies instead of direct hire. When they use the staffing firm, that puts the responsibility of offering health insurance on the staffing firm’s shoulders not the business. Staffing agencies can thus grow faster than expected and change their ACA requirements. Realizing your growth can help your firm prepare for the way the ACA affects your specific agency.

The ACA continues to impact staffing agencies as businesses change their employment models. There are bound to be mistakes as your staffing firm responds to the new growth. Protect your agency with employee benefits liability insurance for when an error or omission does occur.