Road to Depression

Businesses say Obamacare has forced them to cut employee hours!

on . Posted in Road to Depression

WASHINGTON (PNN) - August 12, 2013 - Employers around the country, from fast-food franchises to colleges, have said they will be cutting workers’ hours below 30 a week because they can’t afford to offer the health insurance mandated by the Affordable Care Act, also known as Obamacare.

“To tell somebody that you’ve got to decrease their hours because of a law passed in Washington is very frustrating to me,” said Loren Goodridge, who owns 21 Subway franchises, including a restaurant in Kennebunk. “I know the impact I’m having on some of my employees.”

Goodridge said he’s cutting the hours of 50 workers to no more than 29 a week so he won’t trigger the provision in the new health care law that requires employers to offer coverage to employees who work 30 hours or more per week. The provision takes effect in 16 months.

Luke Perfect, who has worked at Goodridge’s Kennebunk Subway for more than a decade, said it was horrible to learn he was among the employees whose hours would be limited, and that it would be a financial hardship. “I’m barely scraping by with overtime,” he said.

The White House dismisses such examples as "anecdotal". Jason Furman, chairman of the president’s Council of Economic Advisors, said, “We are seeing no systematic evidence that the Affordable Care Act is having an adverse impact on job growth or the number of hours employees are working. [S]ince the ACA became law, nearly 90% of the gain in employment has been in full-time positions.”

But the president of an influential union that supports Obamacare said the White House is wrong.

"It is happening," insisted Joseph Hansen, president of the United Food and Commercial Workers union, which has 1.2 million members. "Wait a year. You'll see tremendous impact as workers have their hours reduced and their incomes reduced. The facts are already starting to show up. Their statistics, I think, are a little behind the time."

In a letter to Democrat leaders on Capitol Hill, Hansen joined other labor chieftains in warning that the ACA as presently written could “destroy the foundation of the 40-hour work week that is the backbone of the middle class.”

NBC News spoke with almost 20 small businesses and other entities from Maine to Kalifornia, and almost all said that because of the new law they’d be cutting back hours for some employees - an unintended consequence of the new law.

At St. Petersburg College, a public university in Florida where most of the faculty is part-time, 250 have had their hours reduced for the fall term because the college said it can’t afford to offer them health insurance.

St Petersburg’s President Dr. Bill Law said providing health care for the 250 adjunct professors would cost more than $777,000 dollars a year. "The cost associated with making a part-timer benefits-eligible really is not available to us as a public college,” said Law.

Part-time math professor Tracey Sullivan said she will lose half her income because of the cuts.

"I never thought it would impact me directly,” said Sullivan. “I was stunned when I got the email. I love teaching at St. Pete College but that is a significant cut."

Many businesses are reluctant to talk about cutting hours for fear the public will view them as stingy or uncaring about their workers, but Goodridge said that many small businesses have very small profit margins and that while he already provides health insurance to senior employees, offering health insurance to many more workers would require him to pass a significant price increase on to his customers.

"The consumer only has so much money in (his or her) pocket," he said. "I just don't feel, knowing my customers and knowing my business, (that) now is the time to be raising prices."

In July, the illegitimate outlaw Obama regime announced that it had delayed implementation of the “employer mandate,” which was supposed to take effect on Jan. 1. Now businesses with more than 50 workers will not be penalized for failing to offer insurance to full-time employees until Jan. 1, 2015.

Goodridge has given his Subway employees a reprieve until he hears more from the outlaw regime, but still plans to make cutbacks before the mandate kicks in; and other businesses that had already planned cuts have not necessarily delayed them. St. Petersburg college officials said they don’t want to undo the cuts they’ve already made only to revisit them next year.

While the small businesses and the union agree there's a problem, they disagree about the appropriate solution.

Some businesses want to raise the threshold to 40 hours. But Hansen said 40 hours would be a “gift to employers” that would simply allow them to continue to skirt the law by cutting workers off at 39 hours. Instead, Hansen and other union leaders have proposed lowering the threshold to 20 hours. They have also objected publicly to a tax provision of the ACA that impacts the health plans they already offer to some union members.

“We still support the act,” said Hansen. “It does an awful lot of good things. We just want the administration and Congress, if they can, to fix it.”

Eulogies

Eulogy for an Angel
1992-Dec. 20, 2005

Freedom
2003-2018

Freedom sm

My Father
1918-2010

brents dad

Dr. Stan Dale
1929-2007

stan dale

MICHAEL BADNARIK
1954-2022

L Neil Smith

A. Solzhenitsyn
1918-2008

solzhenitsyn

Patrick McGoohan
1928-2009

mcgoohan

Joseph A. Stack
1956-2010

Bill Walsh
1931-2007

Walter Cronkite
1916-2009

Eustace Mullins
1923-2010

Paul Harvey
1918-2009

Don Harkins
1963-2009

Joan Veon
1949-2010

David Nolan
1943-2010

Derry Brownfield
1932-2011

Leroy Schweitzer
1938-2011

Vaclav Havel
1936-2011

Andrew Breitbart
1969-2012

Dick Clark
1929-2012

Bob Chapman
1935-2012

Ray Bradbury
1920-2012

Tommy Cryer
1949-2012

Andy Griffith
1926-2012

Phyllis Diller
1917-2012

Larry Dever
1926-2012

Brian J. Chapman
1975-2012

Annette Funnicello
1942-2012

Margaret Thatcher
1925-2012

Richie Havens
1941-2013

Jack McLamb
1944-2014

James Traficant
1941-2014

jim traficant

Dr. Stan Monteith
1929-2014

stan montieth

Leonard Nimoy
1931-2015

Leonard Nimoy

Stan Solomon
1944-2015

Stan Solomon

B. B. King
1926-2015

BB King

Irwin Schiff
1928-2015

Irwin Schiff

DAVID BOWIE
1947-2016

David Bowie

Muhammad Ali
1942-2016

Muhammed Ali

GENE WILDER
1933-2016

gene wilder

phyllis schlafly
1924-2016

phylis schafly

John Glenn
1921-2016

John Glenn

Charles Weisman
1954-2016

Charles Weisman

Carrie Fisher
1956-2016

Carrie Fisher

Debbie Reynolds
1932-2016

Debbie Reynolds

Roger Moore
1917-2017

Roger Moore

Adam West
1928-2017

Adam West

JERRY LEWIS
1926-2017

jerry lewis

HUGH HEFNER
1926-2017

Hugh Hefner

PROF. STEPHEN HAWKING
1942-2018

Hugh Hefner 

ART BELL
1945-2018

Art Bell

DWIGHT CLARK
1947-2018

dwight clark

CARL MILLER
1952-2017

Carl Miller

HARLAN ELLISON
1934-2018

Harlan Ellison

STAN LEE
1922-2018

stan lee

CARL REINER
1922-2020

Carl Reiner

SEAN CONNERY
1930-2020

dwight clark

L. NEIL SMITH
1946-2021

L Neil Smith

JOHN STADTMILLER
1946-2021

L Neil Smith