Obamacare vs. Jobs: The law discourages the hiring of full-time employees

The National Review ^ | November 8, 2012 | Jillian Kay Melchior

[2ndDivisionVet]

Job seekers will soon have a harder time finding full-time work, thanks to Obamacare. As of 2014, the law will attempt to force employers to provide insurance — but in doing so, it will have the unintended effect of making part-time employees more desirable than full-timers.

That’s because if a business with more than 49 full-time employees fails to offer insurance coverage, it will be required to pay a fine. And the fine will apply starting not with the 50th employee, but with the 31st. At $2,000 per employee after the first 30, these fines add up fast. A business that surpasses the threshold by just one full-time employee will face $40,000 each year in penalties.

Businesses that can easily substitute part-time for full-time labor — in particular restaurants, hotels, and retailers — will have a strong incentive to do so. The Wall Street Journal reports that Carl’s Jr., Hardee’s, Red Lobster, and Olive Garden are already planning to hire part-timers instead of full-timers at some or all of their locations. Other employers will restrict their current full-time employees to 30 hours a week so that they will be considered part-time under the law. And, of course, some businesses will opt to stay smaller. France provides an instructive example: There, 50 employees is the magic threshold for whether labor regulations apply. And — no surprise — the country “has more than 2.4 times as many firms with 49 employees as with 50,” Jed Graham notes in Investor’s Business Daily...

[Morris70]

The old and the weak are already being denied medical coverage. If you know a nurse or doctor you will learn more.

[Flick Lives]

OK but what will they do when the money runs out?

You're thinking long term about consequences. That is capitalist roader thinking, comrade! After you get your "free" Obama-phone, the next question you should have is "where's my free data plan"! Do you see how this works, comrade. Progressive thinking does not rely on reality.

[Ronaldus Magnus III]

No Worries! Throughout this monstrosity that is Obamacare, this phrase appears “...as the Secretary (HHS) shall determine.” So, whenever the pressure mounts, or just because, the Secretary can create more reems & reems of rules & regulations. Oh Joy!