Temp Agency, Who Has to Insure Employee?
If the company would like to use a temporary agency to bring onboard an employee to work for a period of time (3 to 8 months), whose responsibility is it to make sure that the temporary employee is offered health insurance benefits?
The company or the temporary agency for where the temporary employee is hired?
Answer
For some purposes of the ACA a temp agency and the client may be a joint-employer. A joint or primary employer must comply with the employer mandate. If the temp agency already offers coverage then the employee would most likely not switch off that to the other employer. An employer only owes the fee if the employee gets Marketplace subsidies. So given this a safe-bet would be to simply offer the temp employee coverage. We haven't found a specific rule that makes not offering coverage a safe bet in this sort of situation. You can read more unofficial advice about the matter here.
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My husband was laid off by employer. The employer called my husband to hire him back but he would have to be hired by the temp agency. He did have insurance before being laid off but now since he had to go through the temp agency he can’t get insurance through employer and the temp agency only has a fixed indemnity insurance plan which does not meet the Obama minimum essential coverage. Any advise. My husband did pay a portion of health insurance through his employer. We can’t afford the Obama care marketplace fee we are expected to pay.
Is it required that Staffing agencies offer some type of health insurance to its employees?
I’m not sure this answers the question. Who, then, is responsible? The temp agency or the other company? I’m trying to determine whether or not a staffing company is required to offer insurance.
I’ll have to go back and research this again. I believe that both the temp agency and the employer have to offer coverage, but that would only be to those working over 30 hours a week on average. Don’t quote me on that though, I’ll research and give this a definitive answer when I have one.