Express Employment's Funk: Obamacare Is 'Disincentivizing' Business to Hire Employees

Friday, 04 Oct 2013 08:02 AM

By Michelle Smith

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Staffing firms are growing rapidly thanks to Obamacare, but that growth is not in the best interest of the nation, says Bob Funk, CEO of Express Employment and former chairman of the Federal Reserve Bank of Kansas City.

"Businessmen need to know what their bottom line is going to be when they set up their budgets every year, and they can't do that not knowing what Obamacare is," Funk tells Yahoo.

Employers are particularly concerned about the portion of the law known as the employer mandate. It requires companies with 50 or more employees to either provide health insurance for full-time workers or face a penalty. Traditionally, full time was considered a 40-hour workweek; under Obamacare it's defined as 30 hours.

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An "unfortunate" consequence of the law is that small businesses are trying not to grow, Funk notes.

"It is disincentivizing people. And they're going to stop [hiring] at 49 employees," he adds.

Funk also paints a dim prospect for full-time job growth, forewarning that the nation is set to see a notable shift to jobs with shorter workweeks.

"We're trying to go to full time employment. We'd love to have people on 40 hours a week, but the government is going in just the opposite direction, from 40 hours a week down to 29 or 30 hours a week. We don't think that's in the best interest of industry in particular," he explains.

In fact, Funk claims that many companies are trying to sever direct ties with all of their workers.

"Many of them are wanting to put all of their employees on our payroll. We don't think that's in the best interest of the company culture for small or medium sized business," says Funk.

He points out that "the Supreme Court determined [Obamacare] is going to be a tax. And any time that government taxes businesses, it will retreat, of course, in their growth,"

Funk projects that Obamacare will "slow down business for quite sometime to come" because that's what happens every time government "intrudes into business in a negative way," he says. And anything that takes away businessmen's incentive to build their companies is bad for the nation.

Surveys confirm Funk's observations.

An April survey conducted by the Society for Human Resource Management found 41 percent of the 603 small business owners polled delayed hiring because of the federal healthcare law, Fox Business Network reports.

The government delayed the employer mandate until 2015, but still, the survey reported one in five companies had already cut hours and 20 percent had reduced payroll.

And Fox said Mercer, a human resources consulting firm, reported that 12 percent of all US employers plan to cut employees hours because of Obamacare.

Editor’s Note: Add Up to $152,046 to Your Social Security Benefits Using Weird Trick

Related Stories:

Temporary Staffing Booming, Outpacing Increase in Permanent Jobs


Obamacare, Tepid Economic Growth Fuel Part-Time Hiring

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