Wendy’s franchise slashes employee hours to avoid Obamacare
On January 8, 2013 At 9:49 am
Responses : One Comment
The God Discussion reported on 6 December 2012 that the corporation which owns both Olive Garden and Red Lobster restaurants had announced they would be shifting their employee base to part time status due to regulations coming into effect as a result of the Patient Protection and Affordable Care Act (PPACA), often referred to as 'Obamacare.' Because of this, they have been enduring a public relations nightmare, and their stock value fell thirty-seven percent.
Now, an Omaha, Nebraska-based Wendy's restaurant franchise operation has announced plans to slash the hours of three hundred employees, to avoid providing health care coverage. This shifts the costs of health care insurance back to the employees, many of them earning very little wages.
In order to qualify for an exemption to provide health care insurance, the franchise owner, Gary Burdette, is reducing the hours to 28 per week. The Affordable Health Care Act requires health insurance to be provided for employees working 32-38 hours per week. Under 32 hours is consdered part time employment. Burdette says that he cannot stay in operation and provide health insurance to his employees.
According to a story filed by ThinkProgress, the Urban Institute states that the Affordable Health Care Act will have an insignificant impact on the cost of doing business. In fact, the report stats that large companies may be slightly affected, but the costs to small businesses will end up being lower.
Burdette's announcement regarding his plans to cut all non-management positions to 28 hours per week will effect eleven restaurants, directly impacting about one hundred employees and their families. Management employees will continue to have benefits.
For more information, relevant links and commentary, please read the rest of the story at ThinkProgress.