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Current Events & Hot Topics Current Events & Hot Topics

More Companies cut part-time worker hours to avoid Obamacare requirement

Companies cut part-time worker hours to avoid Obamacare requirement: report
http://www.nydailynews.com/news/politics/companies-cut-worker-hours-avoid-obamacare-report-article-1.1333305

Obamacare may end up hurting many of the part-time workers the President had hoped it would help.

Under the far-reaching health care law, large employers are required to offer health insurance to part-time employees working at least 30 hours a week.

But that’s not how it’s played out.

Instead of granting insurance plans to part-time employees, a growing number of larger firms are actually cutting back on workers’ hours altogether, the Los Angeles Times reported.

In the process, the employers are stripping part-time workers not only of their ability to get company health insurance but of their much needed wages as well.

The city of Long Beach, Calif., for example, is cutting the hours of many of its 1,600 part-time workers to fewer than 27 hours per week, the Times reported, in an effort to prevent them from qualifying for company-offered health insurance.

Obama's signature Affordable Care Act has had unintended consequences.

Long Beach officials have said the benefits they otherwise would have to offer could cost the municipality as much as $2 million, a price that could result in cutbacks to city services.

"We're in the same boat as many employers," Tom Modica, the city's director of government affairs, told the Times. "We need to maintain the programs and service levels we have now."

More than 2 million workers at large restaurant chains, retailers and a variety of other companies that employ more than 50 people across the U.S. are facing similar consequences.

Bill Dombrowski, who heads up the California Retailers Association told the Times that the cuts represent “the only way to survive economically” under the requirements under the Affordable Care Act.

Last week, the largest U.S. movie-theater chain cut the hours of many workers below 30 hours to bypass the law. In a memo to employees, the Regal Entertainment Group, blamed the decision explicitly on the policy often referred to as “Obamacare.”

“To comply with the Affordable Care Act, Regal had to increase our health care budget to cover those newly deemed eligible based on the law's definition of a full-time employee,” the company stated in a memo. “To manage this budget, all other employees will be scheduled in accord with business needs and in a manner that will not negatively impact our health care budget.”

Darden Restaurants Inc., which owns the Olive Garden and Red Lobster chains, made similar cuts last year, too, before the company reversed course due to intense criticism.

aedelman@nydailynews.com
by on May. 2, 2013 at 11:37 PM
Replies (21-30):
Momniscient
by Ruby Member on May. 3, 2013 at 1:05 AM
5 moms liked this

Guess no one told walmart or kroger to wait to do this until they could blame it on obamacare.

DestinyHLewis
by Destiny on May. 3, 2013 at 1:10 AM
2 moms liked this

Yes, that's totally the reason. It has nothing to do with the fact hundreds of employers are in the same boat due to this botched law. It's not just the EVIL Walmart and Kroger, all businesses are evil if they are honest and say they can't afford this abomination. Smh. 

Quoting Momniscient:

Guess no one told walmart or kroger to wait to do this until they could blame it on obamacare.



Momniscient
by Ruby Member on May. 3, 2013 at 1:14 AM
3 moms liked this

I own a business. This law has changed nothing in what I do. Except saved my money actually...

Or is it...that some employers see a really good excuse to once again cut hours?

Hundreds of employers have been doing this for a lot longer than Obamacare. Not just evil walmart and kroger... those were just two names that everyone recognizes.

I worked at Taco Time right after high school. I was never allowed to exceed 32 hours. Never.

Quoting DestinyHLewis:

Yes, that's totally the reason. It has nothing to do with the fact hundreds of employers are in the same boat due to this botched law. It's not just the EVIL Walmart and Kroger, all businesses are evil if they are honest and say they can't afford this abomination. Smh. 

Quoting Momniscient:

Guess no one told walmart or kroger to wait to do this until they could blame it on obamacare.





DestinyHLewis
by Destiny on May. 3, 2013 at 1:19 AM
1 mom liked this


I am truly interested. How has this helped you and your business? I have numerous friends who own their own business who say it is ruining them, and others like my husband and myself that have seen nothing but astronomical increases in our insurance due to this. Please tell me how this has helped your business? I am all for an open discussion on it, you are honestly the only business owner I have seen say that. 

Quoting Momniscient:

I own a business. This law has changed nothing in what I do. Except saved my money actually...

Or is it...that some employers see a really good excuse to once again cut hours?

Hundreds of employers have been doing this for a lot longer than Obamacare. Not just evil walmart and kroger... those were just two names that everyone recognizes.

I worked at Taco Time right after high school. I was never allowed to exceed 32 hours. Never.

Quoting DestinyHLewis:

Yes, that's totally the reason. It has nothing to do with the fact hundreds of employers are in the same boat due to this botched law. It's not just the EVIL Walmart and Kroger, all businesses are evil if they are honest and say they can't afford this abomination. Smh. 

Quoting Momniscient:

Guess no one told walmart or kroger to wait to do this until they could blame it on obamacare.






Sisteract
by Whoopie on May. 3, 2013 at 1:19 AM

Funny, my husband works for Kroger- about 70 hours a week.

Quoting cjsix:

 kroger

Quoting Sisteract:

Which one?

Quoting cjsix:

 One of the national grocery chains just cut everyone back to 28 hours...


 


cjsix
by Bronze Member on May. 3, 2013 at 1:26 AM

 Well ,I know someone who works for Kroger and the stores where they are just cut to 28 hrs. maybe not management but,from the sounds of thing pretty much everyone else.

Quoting Sisteract:

Funny, my husband works for Kroger- about 70 hours a week.

Quoting cjsix:

 kroger

Quoting Sisteract:

Which one?

Quoting cjsix:

 One of the national grocery chains just cut everyone back to 28 hours...


 


 

Momniscient
by Ruby Member on May. 3, 2013 at 1:30 AM
2 moms liked this

How have you seen astronomical increases due to Obamacare?

The only obamacare policy that has gone into effect that affects us were the preexisting conditions that were eradicated. Companies are no longer allowed to deny or max rate based on pre existings so we save over $1400 a month because our group policy is no longer allowed to be max rated based on individual pre existings. It's amazing. We also will be able to utilize small business tax breaks. In 2014 when the exchange goes into effect we may be able to get it cheaper or we will stay the same.

We don't have the amount of employees anyway that would mean we would have to pay a penalty if we chose not to provide insurance.

Also, under obamacare it is my understanding that individuals can get together to form groups which is much cheaper. Perhaps you should look into it.

How is it ruining your friends business's? My uncle was vehemently against Obamacare and still hates that 'fucking democrat' and even he admits that his business has not seen , nor will see any hit from it (and he employs far more people than I do).

Quoting DestinyHLewis:


I am truly interested. How has this helped you and your business? I have numerous friends who own their own business who say it is ruining them, and others like my husband and myself that have seen nothing but astronomical increases in our insurance due to this. Please tell me how this has helped your business? I am all for an open discussion on it, you are honestly the only business owner I have seen say that. 

Quoting Momniscient:

I own a business. This law has changed nothing in what I do. Except saved my money actually...

Or is it...that some employers see a really good excuse to once again cut hours?

Hundreds of employers have been doing this for a lot longer than Obamacare. Not just evil walmart and kroger... those were just two names that everyone recognizes.

I worked at Taco Time right after high school. I was never allowed to exceed 32 hours. Never.

Quoting DestinyHLewis:

Yes, that's totally the reason. It has nothing to do with the fact hundreds of employers are in the same boat due to this botched law. It's not just the EVIL Walmart and Kroger, all businesses are evil if they are honest and say they can't afford this abomination. Smh. 

Quoting Momniscient:

Guess no one told walmart or kroger to wait to do this until they could blame it on obamacare.








littlesippycup
by Bronze Member on May. 3, 2013 at 1:30 AM

That's horrible. So now these people not only didn't get insurance, they got their hours cut.

Ziva65
by Gold Member on May. 3, 2013 at 1:31 AM
1 mom liked this

Yup. I own a company, same boat. We actually halted growth and hiring once Obama got into office. Still waiting. I have a lot of growth plans too- would be happy to grow the company and hire more people... still waiting. Our taxes have already increased dramatically, our insurance rates have gone up over 60 percent over these several years...

I do have plans though, if he still continues to screw everyone over, we will sell and just bank it. I'm not investing it until I have a better feel for our administration. I will sell out, and be far better off with less less stress than now. So much for all the employees and families we support I guess. They can thank Obama. No more hope for many.

 

Ziva65
by Gold Member on May. 3, 2013 at 1:42 AM

 Wow, not here. Ours has dramatically increased, Plus, our notices from insurances (across the board, Blue Cross, Kaiser) have outlined their cost increases. If business pay 100% of the premium for employees, then they get the tax credit- got notified the tax breaks don't apply to us, so sorry. Why bother to employ really. We pay 80% of insurance, no tax credit, but we had it raise over 60% they have clearly stated it is in preparation to ensure that the ACA requirements are met, just planning, not even implemented.

If people believe it will benefit them, they need to read the fine print.

Plus, being on hospital boards, there are really panels limiting care, no kidding, they have to cut somewhere- having elderly parents I see it too.

Employers now will get a new per employee charge, and tax to help cover Obama care- separately from premiums...

I have 4 friends who owned good size companies, and two more with restaurants. All just bailed. Hundreds of people out of work. I don't blame them. I know physicians planning to leave their practice. I happen to be an NP too- it's a bit scary about restrictions for testing coming down the line.

I'd be curious how it's helped your company- how big your company is and how many people you employ. It's really the first I have heard of anyone benefitting. We employ about 50 people, soon to go just under that number for obvious reasons, and it is a multimillion dollar company. Plus, we have stopped expansion, hoping he'd be out of office...


Quoting Momniscient:

How have you seen astronomical increases due to Obamacare?

The only obamacare policy that has gone into effect that affects us were the preexisting conditions that were eradicated. Companies are no longer allowed to deny or max rate based on pre existings so we save over $1400 a month because our group policy is no longer allowed to be max rated based on individual pre existings. It's amazing. We also will be able to utilize small business tax breaks. In 2014 when the exchange goes into effect we may be able to get it cheaper or we will stay the same.

We don't have the amount of employees anyway that would mean we would have to pay a penalty if we chose not to provide insurance.

Also, under obamacare it is my understanding that individuals can get together to form groups which is much cheaper. Perhaps you should look into it.

How is it ruining your friends business's? My uncle was vehemently against Obamacare and still hates that 'fucking democrat' and even he admits that his business has not seen , nor will see any hit from it (and he employs far more people than I do).

Quoting DestinyHLewis:

 

I am truly interested. How has this helped you and your business? I have numerous friends who own their own business who say it is ruining them, and others like my husband and myself that have seen nothing but astronomical increases in our insurance due to this. Please tell me how this has helped your business? I am all for an open discussion on it, you are honestly the only business owner I have seen say that. 

Quoting Momniscient:

I own a business. This law has changed nothing in what I do. Except saved my money actually...

Or is it...that some employers see a really good excuse to once again cut hours?

Hundreds of employers have been doing this for a lot longer than Obamacare. Not just evil walmart and kroger... those were just two names that everyone recognizes.

I worked at Taco Time right after high school. I was never allowed to exceed 32 hours. Never.

Quoting DestinyHLewis:

Yes, that's totally the reason. It has nothing to do with the fact hundreds of employers are in the same boat due to this botched law. It's not just the EVIL Walmart and Kroger, all businesses are evil if they are honest and say they can't afford this abomination. Smh. 

Quoting Momniscient:

Guess no one told walmart or kroger to wait to do this until they could blame it on obamacare.

 

 


 

 



 

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