Denny's and others will impose a 5% Obamacare tax...sniggle
Some Dennyâs Restaurants To Charge 5% âObamacare Surchargeâ To Deal With Health Care Legislation
Florida-based businessman John Metz, owner of 40 Dennyâs franchise restaurants, plans to add the surcharge directly to customersâ checks as an up-close-and-personal way of dealing with the increased costs imposed by the Affordable Care Act, better known as âObamacare,â which mandates that businesses with more than 50 workers must offer an approved insurance plan or pay a penalty of $2,000 for each full-time worker over 30 workers.
The ACA comes into full effect in January 2014. Metz says the direct surcharge is âthe only alternative. Iâve got to pass on the cost to the customer.â
Metz stressed that he is not âanti-insurance,â but rather he understands the severe costs the legislation will impose on employers and employees alike: âObviously, Iâd love to cover all our employees under that insurance,â Metz told the Huffington Post. âBut to pay $5,000 per employee would cost us $175,000 per restaurant and unfortunately, most of our restaurants donât make $175,000 a year. I canât afford it.â
The restauranteur is unconcerned with the potential backlash from doing what some might consider an expressly political statement by directly charging the customer for Obamacare. He told HuffPosthe is willing to take the heat, and that âWeâre trying to get more restaurant operators rallied around the concept of adding a 5 percent surcharge to their bill to cover the costs of Obamacare as opposed to raising prices.â
Metz also plans to cut employee hours. âI think itâs a terrible thing. Itâs ridiculous that the maximum hours we can give people is 28 hours a week instead of 40,â he said. âItâs going to force my employees to go out and get a second job.â
Full HuffPost report here.