jammed up with proposals, but this very timely article in the times caught my eye because i genuinely believe it's a major reason people are scared to hire full time right now (forget the threat of future regulations - pure bunk and posturing). consider their example case:
"Here is how the math works: Say you have a 10-employee business in Illinois. If you had not had any unemployment charges during the previous three years, the state unemployment insurance rate would be 0.7 percent — the Illinois minimum — of the first $12,740 of each employee’s wages, costing your business about $900 per year. If a laid-off employee then collected $10,000 against your account, your rate would go up to almost 5 percent, increasing what you pay to more than $6,000 a year for three years and costing your business more than $16,000 in increased unemployment insurance payments over that period — more than the employee would collect."
now, as the employer, are you going to want to take a potential 16k hit over each fire? of course not.
the reality for most firms is that:
future backlog is highly fluid right now. projecting more than 6 months out is difficult at best.
there's a lot of work that has a 3-6 month term on it, but that's it.
the laws governing short term hires are....well....fairly non-existent in the states.
what this article touches on is the hit an employer can take for doing the 'right thing'. and if you're a small firm, those kinds of numbers aren't inconsequential. especially if you just need a 6 month hire.
so, i'm not smart enough to project a way out of the dilemma. any thoughts?
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