Indiana University shifting 50 jobs to temp agency
Unintended consequences of ACA
Last Updated: 92 days ago
BLOOMINGTON, Ind. - Indiana University is cutting about 50 hourly workers at the Bloomington campus and shifting that work to a temporary staffing agency.
University spokesman Mark Land says the move is partly being made to avoid having to add those workers to the IU health insurance plan as required by the federal health care overhaul if they average more than 30 hours a week.
"We don't want to cut hours for folks. We have a responsibility not to spend any more on health care than is absolutely necessary. That is what has made this so challenging. We're caught on both sides of this and we are trying to navigate some very tricky waters," Land said.
Land told The Herald-Times (http://bit.ly/1dWq3kc ) that shifting 50 of the physical plant department's 650 jobs will also relieve the administrative task of managing the hours of seasonal workers.
IU will have the Manpower agency hire the maintenance and custodial personnel after Sept. 28. The university will pay the agency an administrative fee to manage the workers.
Plant workers are not the only ones who will have to adjust to the changes, graduate students will also feel the impact.
“They are doing their dissertations and their thesis. They'd love to work 40 hours, maybe 45 hours. They are trying to make ends meet and the university is saying we are gonna limit the number of hours you can work because they don't want to hit the ACA threshold,” Timothy Slaper from the Indiana Business Research Center said.
Sen. Joe Donnelly and Rep. Todd Young think adjustments need to be made to Affordable Care Act.
"It would restore the definition of full time within the Affordable Care Act back up to 40 hours. For the first time in American history, a law has defined full time at 30 hours. That is inconsistent with the popular understanding of a full-time week," Young said.
Donnelly is still looking for co-sponsors for the bill, and he hopes it will reach the House floor sometime in the fall.
Follow Derrik Thomas on Twitter: @derrikthomas
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