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January 03, 2013

Suprise: Employers Cutting Hours, Reducing Hiring to Avoid ObamaCare's Expensive Mandate

Well, in an economy this robust, I suppose we can afford to lose some employment.

About a quarter of businesses surveyed by consulting firm Mercer donít offer health coverage to employees who work at least 30 hours a week. Half of them plan to make changes so fewer employees work that many hours. The health care law will particularly affect companies with 40 to 45 workers that plan to expand and hire. Many are holding off so they donít cross the 50-employee threshold, says Christine Ippolito, principal at Compass Workforce Solutions, a human resource consulting firm in Melville, N.Y. Ernie Canadeo, president of EGC Group, a Melville-based advertising and marketing agency with 45 employees, planned to add 10 next year but now says he may add fewer so heís not subject to the mandateÖOthers already over the 50-employee threshold plan to add more part-time workers or cut the hours of full-timers, says Rob Wilson, head of Employco, a human resource outsourcing firm. Many, he says, will hire more temporary workers, whom they wonít have to cover.

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