2016 brings a lot of change to business operators and in particular to many employers. Minimum wage has gone up in 14 states, a lower employee threshold kicks in for the Affordable Care Act, and new regulations are popping up across the country. The general take away for business in 2016 is that costs are going up, especially for labor, and more of how operations are run may be monitored.
More overhead, same productivity.
I'm not an expert on Health Care, but the news I read says that businesses with over 50 full time employees are now required under ACA to provide affordable insurance options for their employees. According to the U.S. department of human health and services (You can read about it here), a full time position is now considered to be working an average of 30 hours or more in one week. Many businesses have changed their policies and lowered their employee's hours in order to avoid the requirement, thereby limiting work hours for their employees.... so more overhead to maintain the same productivity. Companies that do not meet the 50 employee threshold will still have to monitor their employees and are required to make a determination each year.
An Alternative. So what is an employer to do (especially in a state like California where the costs are especially burdensome)? There is an alternative for companies that rely on hand packing for their products! Automated packaging can reduce labor costs and increase productivity. Companies near the 50 full time employee threshold can invest in automated packaging and save a large amount of money on health care while also increasing production. Automation can relieve financial pressure and will help your overall business prosper.