It is just giving you some things to think about if you (an employer) is planning to convert employees to contractors.
Since there are a lot of pitfalls to this process it seems the gov’t has employers over a barrel.
I would assume that it would be best to begin “contracting” people instead of hiring them.
I would also think that a larger company might break themselves up into small independent companies so that the worker limits would be below gov’t thresholds and avoid some of the new fines.
Thats is the ticket. Break your business into smaller companies with less employees in each company.
The rigid labor laws are a major factor in limiting the recovery. The employee/contractor laws have been a problem for some time but this recession is highlighting their destructive effects. The rats have substantially increased the cost of employment in a variety of ways. With reasonable freedom to choose your status, many individuals could become contractors. I understand that many individuals would prefer to be employees but being a contractor beats the food bank. You can still be a contractor but the rules are so strict that many companies prefer to offshore rather than use contractors here.
It is simply easier to cancel all health insurance, pay the 8% fine, and be done with it