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One of the new laws that was born out of the Affordable Care Act, Obamacare, was the Employer Mandate. The Mandate states that any Business that is currently employing more than 50 full-time employees and does not offer a health plan will be penalized. This was done to deter business from dropping their employee insurance coverage after the affordable care act would go into effect. The government wanted to insure that any existing sponsored employee plans would remain in effect.
The Obamacare Effect
As you may imagine business forced to offer insurance or get penalized would great great incentive to find loop holes. One such loop hole that was feared is that employers will simply get around this law by limiting their full time employees to just under 50, while hiring any additional employees on a part time basis. This is what is known as “The Obamacare Effect.”
Fortunately, this Obamacare effect did not happen. At least based on the latest poll taken at 2014, the number of part time employees nation wide declined by over 200,000 while the number of full-time jobs increased by over 2,000,000.