Skip to comments.Is The 29 Hour Work Week Coming As Employers Seek To Escape The Obamacare Mandate?
Posted on 11/11/2012 8:03:51 AM PST by Renfield
Businesses with 50 or more employees who average at least 30 hours of work a week will be subject to the Obamacare insurance coverage mandate.
Companies are reportedly planning large layoffs due to the implementation of Obamacare.
But, companies can potentially avoid being subject to Obamacare's insurance requirements by limiting employees weekly hours to less than the 30 hour level defined by Obamacare as full-time.
A little-known section in the ObamaCare health reform law defines full-time work as averaging only 30 hours per week, a definition that will affect some employers who utilize part-time workers to trim the cost of complying with the ObamaCare rule that says businesses with 50 or more full-time workers must provide health insurance or pay a fine.
The term full-time employee means, with respect to any month, an employee who is employed on average at least 30 hours of service per week, section 1513 of the law reads. (Scroll down to section 4, paragraph A.)
That section, known as the employer mandate, requires any business with 50 or more full-time employees to provide at least the minimum level of government-defined health coverage to those employees. In other words, a business must provide insurance if it has 50 or more employees working an average of just 30 hours per week, which is 10 hours per week fewer than the traditional 40-hour work week.
Thus, by cutting employees hours to ensure they average less than the 30 per week, employers could potentially avoid the cost of providing the minimum insurance levels mandated by Obamacare.
Of course, the MSM will reach into its bag of tricks where it got “staycation” and “funemployment” from, and come up with some term to make this sound better. Anybody want to guess what that will be?
Obama will sign an Executive Order saying that no business can make any decisions unless King Obama approves
Rectified with an exec order banning part time employment.
It’s already happening. The 40+ workers will find themselves working part time jobs, no insurance, facing death panels, unless they’re a union whore.
Well for years the left has been clamoring for shorter week like the Eurotrash get. Unless you are the owner though. 99% of the owners look at 12 hours as a half day.
In which case he might as well follow this with another one banning closing any business, whether you're making money or not.
I remember fifty years ago, when our high school teacher told us that in the future the average work week would be 30-35 hours so everyone could have a job, as there would be too many people to give everyone a 40 hour weekly job.
Looks like they were correct.
It’s already happened here. Now they are trying to work two jobs.
Each full timer will be replaced by two part timers.
The unemployment rate will magically be cut in half.
Who knows? Until we get conquered as a nation, we might all be happier being destitute, but only working a few days a week. (Maybe three 9 and 1/2 hour days?)
Here’s what is real scary, the day that only one person in a household will be able to work a full-time job. Technology is making the number of jobs needed less and less with each passing year, so the argument will be, why should their be two wage earners in a house when there are so many others who can’t even get one job?
“Its already happening. The 40+ workers will find themselves working part time jobs, no insurance, facing death panels, unless theyre a union whore.”
Businesses with more than 50 employees who cannot move a significant number of employees to part time will end their health coverage and pay the $2000 per employee fine to the government. This will allow them to avoid the $6000+ annual cost of insuring an employee. Of course the employee will be required by law to have insurance and will have to buy it on the open market, effectively reducing her/his consumable income. For the business converting from paying health insurance to paying the fine, it is a net plus. Collecting fines is also a plus for the government. Everyone wins except the employee, as usual.
This is what they do in France. People have 2 or 3 jobs. Great, we have finlly become France.
The leftist tools has already called for punishing companies that layoff employees.
Somebody who wants to be a reporter is going to have to do a lot of work on their own time in the future. They may well not be so happy to do that particularly when their job no longer provides medical insurance at all ~ without those state exchanges, and no federal exchanges having been appropriated for, there will be no private health insurance available for working people.
WAY TO GO OBAMA!!!!
Well sure, kill enough jobs and it makes them look like a sage.
I could predict there will only be a need for 100 workers in the near future, and Obama looks as if he’s going to prove me right.
The standard for urban workers in Big China is to share a job.
many people will jump directly to the Zero Hour Workweek, thanks to Obamacare
The problem with this is as quickly as possible, we are exporting jobs.
America is currently let by two parties, who destroy America.
The Dems destroy America by wanting unions. Unions make things less competitive.
The GOP destroy America by sending jobs elsewhere. That simply destroys opportunity here.
NOBODY is doing this right. What we need is a serious national effort to bring back jobs (through legislation even), which does not send those workers into unions.
Without both of those, we continue to shrink and to fail.
But what we are doing now is FAILED.
We must bring back American jobs.
Kroger will soon join the ranks of Darden Restaurants (Olive Garden, LongHorn Steakhouse, Red Lobster and others) and slash the hours of its non-exempt (hourly) workers to a maximum of 28 hours/week to avoid millions in Obamacare penalties.
Darden Restaurants employs 185,000, and Kroger’s employs nearly 350,000 people. Most of its jobs are hourly and the vast majority of workers are non-exempt.
Under these current conditions, I can foresee the best businesses that pay $6000 towards healthcare, offering their employees a $6000 bump in pay in lieu of a raise to cover the $2000 fine, and then the employee gets stuck with 15-30% annual healthcare inflation, and the employer is off the hook.
HR burns a ton of time on Healthcare too. HR expenses would be cut by a third. Proposed taxes on (401k and eliminating the mortgage interest deduction will just kill the working American, who will beg for “justice” from the government. The new normal sucks!!!!
Who can blame a company for going tech? With all the goodies and regulations like Onomacare, it's better to use machines. A machine will work non stop, never demand extra days off, never demand longer vacations, never demand more money, and never demand better health care.
Machines will work and be happy. People won't.
I understand completely why robotics have become so popular. A business today would be crazy not to let machines do the work that people won't do without complaining.
Unless employees start to show some gratitude for the jobs they're given, I see robotics being in high demand. They're better - They're easier. They're smarter. They're cheaper. They're easier to get along with.
About a month ago, the government released an 18 PAGE definition of "full-time worker."
I can't wait to get my health care at the DMV.
My understanding is that companies need to have a lot of this stuff in place by January 2013. We’ve heard media reports of some large companies moving in this direction.
Why do folks think unemployment fell 0.3% in September? Full-time folks were having their hours reduced to under 30 hours, and many hundreds of thousands of folks were hired on a part-time basis to pick up the slack.
So, the Kenyan anti-Christ gets the best of all worlds: he destroys hundreds of thousands of full-time jobs; makes folks increasingly dependent on the government; and gets “CREDIT” for decreasing unemployment!
Trade is WAY WAY WAY over-rated.
It can be constructive, and destructive.
Capitalism is the best system going, but if it is used improperly, it can be destructive too.
In a balanced economy, Capitalism is great. When you open up an economy like ours to an economy like China’s, one system loses and one wins.
I’ll let folks figure out if this is right or not.
Which nation prospered most over the last twenty years, the U. S. or China?
Any plan that puts people on my block out of work, so someone making 1/150th of what they do per hour can work, is not a good plan.
It’s actually worse than 30 hours per week. In a straight up job, that’s probably accurate. Under welfare to work programs, the individual can work as little as two perhaps three part time days per week, and still be considered employed.
Twelve hours max, is that what we normally think of as full employment?
I kid you not, our government overlords are cheating/lying to us every possible way they can.
You said a policy costs the company $6000. Good health care policies cost a around $1300 per month per employee. My husband’s company has a top tier policy and it costs us $300 per month and the company $1000 per month (and there’s just the two of us, I don’t know what a family plan costs.
My company’s policy which has much higher deductibles, cost my employer about $1000 per month. Employer pays $900 employee $100.
So since I realize the cost of their healthcare is so high, I believe the incentive in the whole penalty being cheaper by far than what they pay is to drive them to drop employees from healthcare and force them to choose a government offered plan.
My previous employer, General Dynamics, outsourced their production inventory. The new company looks into the MRP, Material Resource Planning system and brings in the inventory for that day. They stock it. They also (mostly) buy it, inspect it and guarantee it. The idea was to eliminate buyers, inspectors, inventory clerks and save floor space. It has worked spectacularly well.
My present employer (Im a contractor) uses mostly no benefits contractors regardless of how important the position is. Much of the inventory is dispensed from vending machines owned by Fastenal. These include virtually all of the consumables; welding rods, helmets, special overall suits, etc. Again, the purpose was to eliminate full time jobs. Now, you might say, well, those fulltime jobs have simply moved. No, theyve mostly been eliminated by technology. The Fastenal stuff is ordered and drop shipped automatically. There are only a few really young kids who come and fill the machines. I spoke with one and he said he didnt qualify for any benefits.
My employer doesnt own the vending machines, which are in every area. They dont pay for the dispensed product until the employee uses his ID card and buys an item.
Let's say you're a hardworking sort that is OK with only getting 30 hours or less from an employer because you're OK working more than one job.
Problem is now that companies have software that predicts how many workers they need at a particular time. Employees are now getting yanked around from shift to shift to meet the demands of the software. If you're given a shift and can't work it, because you are supposed to be working at your other job, then you may not get any more shifts in the future.
At least if you are in retail, or some other customer-facing business, it may be difficult to manage more than one 20 hr/wk job.
Big government treats us like either ATMs or game show contestants, while big business treats us like mere human resources.
The liberals want to be just like France and it’s happening, yipee!
I wonder if they’ll ever realize what they’ve thrown away.
We’re so screwed.
Anyone remember which candidate got the most support from Insurance Companies in 2008? Here's a hint; it was the same candidate that received record setting contributions from British Petroleum.
Agree, I’m just saying that the best we can hope for is a one time bump in salary to ostensibly cover the healthcare benefit, which then shifts the entirety of providing healthcare to the employee., and the assumption of inflation by the employee. That’s the best case, ratcheting that down , will be some employers who say, sorry folks, we paid $10,000 last year, but next year they want $12,000, so we’re done offering insurance, and they will pocket the $8,000 in savings after paying the $2,000 fine.
I suspect, that many employers will will go that “sorry folks” route, since it might mean a couple of quarterly earning improvements and bonuses for the C level executives.
I tried to explain to folks that outsourcing wasn’t a good thing for the United States. I was literally laughed at.
Well, here we are. Isn’t it grand.
Ok, so how would you have stopped outsourcing in a manner that the cure wouldn’t be even worse than the disease?
Of course the employers will go with the $2K fine.
That’s whole objective. The socialists want everyone on the government plan. (Except the lawmakers who have foisted it on us. They exempted themselves.)
Obama will simply change the rules in flight.
It will be called “full employment sharing”
By halving the number of regular full time workers, businesses will have to hire an equal number of part-time workers to take up the slack.
Unemployment will drop drastically as the economy changes to a “fair share” workforce
Personally, I’d like to share a CEO job or a hedge fund manager rather than share a burger-flipper job, but I’m sure the government will have a fair-share answer: “From each according to his talent, to each according to his need.”
I’m not sure I can think of a worse scenario than what we have right now. Evidently you can.
Tell me what nightmare you can see that is worse than what has happened to our nation over the last twenty years.
Take a good look at our employment situation. We have 22+ million people that can’t find work, and millions more making far less than they did five years ago. And benefits? What benefits?
Tens of millions of our citizens have lost their homes. Those that did retain them are under water. We are actually bulldozing neighborhoods.
And now, with Obamacare coming on board, the next few years are guaranteed to make matters even worse.
Worse than the disease? ROTFLMAO
How much of those employment losses are due to technology and robotics?
We grow a lot more food today than a hundred years ago, with a fraction of the agricultural workforce that was in place back then.
Well there you have it. Outsourcing wasn’t a problem after all.
Thanks. What a relief.
Did I say that?
If companies didn’t save costs by outsourcing, how many would have gone under taking all of the employees with them?
This nation became the greatest nation on earth without outsourcing.
Now all of a sudden, our companies can only go out of business if they don’t outsource? Oh really?
Companies sell products. You tell me. Is it easier to sell those products with 22+ million people out of work, and tens of millions more working for 50 to 75% of what they were five years ago?
In a thriving economy, it take purchasers to drive things. How is it working now that we’ve tossed jobs overboard by the bucket-full?
Companies do not drive things. The consumer drives things. And when you destroy your consumer base, what happens?
Well, what has happened?
I doubt many know all the details of Obamacare yet, but there is probably a point at which part-time workers who are provided no employer health insurance will qualify for Medicaid, and not be required to buy their own insurance.
The old saying “you can’t get blood out of a turnip” will inevitable come into play at some point. What sort of insurance can someone working around 1,600 hours per year at $10.00 per hour afford?
I think there is a fortune waiting to be made for smart, astute people with a decent understanding of tax law, accounting and other matters. The U.S. business community is just dying to hire you to come in and show them how to circumvent these stupid rules ... in perfectly legal ways that meet the letter of the law.
The "29-hour work week" is an obvious one, but how about another alternative that would enable employers to keep people on for 40-hour weeks without having to deal with this nonsense? How about breaking your company into two different companies, and having your employees work 20 hours per week for each company -- doing the exact same work every day? If the IRS gives you any grief, just set up in two different locations in the same building. For 20 hours, I can go to work for Acme Engineering & Architecture in my building ... then for 20 hours I can go to work for Emca Architecture & Engineering right down the hall.
And, we have 22 million who can’t find work, at the same time we have somewhere between 10 and 20 million illegal aliens in this country, many of who have jobs which theoretically the 22 million out of work could be doing.
America may yet devolve into a 3rd world country. A lot of things hang in the balance.