It would appear that many small business owners have noticed that the new rules for providing mandatory health insurance coverage have some significant loopholes: to wit, that they only apply to companies that employ fifty or more full time employers (which is to say, people who work for thirty or more hours a week). The answer to handling the situation then becomes fairly obvious.
And it’s being implemented. See Nebraska:
A fast-food chain is slashing employee hours so franchise owners don’t have to pay health benefits. Around 100 local Wendy’s workers have learned their hours are being cut. A spokesperson says a new health care law is to blame.
The company has announced that all non-management positions will have their hours reduced to 28 a week. Gary Burdette, Vice President of Operations for the local franchise, says the cuts are coming because the new Affordable Health Care Act requires employers to offer health insurance to employees working 32-38 hours a week. Under the current law they are not considered full time and that as a small business owner, he can’t afford to stay in operation and pay for everyone’s health insurance.
The Taco Bell in Guthrie cuts its full-time employees’ hours to avoid mandates under the new health care law.
We talked to the company that owns the Guthrie restaurant today, and it confirmed the cuts. Now, employees there aren’t allowed to work more than 28 hours a week.