Skip to comments.Local Wendy's cuts employee's hours due to Obamacare costs
Posted on 01/08/2013 7:40:17 AM PST by SeekAndFind
An Omaha-based Wendy's franchisee is cutting all non-management workers' hours to part time in order to avoid paying health insurance to its employees.
The cost of Obamacare was cited as the reason:
The company has announced that all non-management positions will have their hours reduced to 28 a week. Gary Burdette, Vice President of Operations for the local franchise, says the cuts are coming because the new Affordable Health Care Act requires employers to offer health insurance to employees working 32-38 hours a week. Under the current law they are not considered full time and that as a small business owner, he can't afford to stay in operation and pay for everyone's health insurance.
There are 11 Wendy's restaurants in the metro. "It has a huge effect on me and pretty much everybody that I work with," says Growbeck, who understands the reasoning and says other part-timers at other fast-food restaurants are facing the same problem. "I'm hoping that I can get some sort of promotion because then I would get my hours, but everybody is shooting for that because of the hours being cut."
Burdette says the decision affects around 100 employees. It was a tough one and he understands why people are upset, but the hour reduction is effective in two weeks for all non-management. Management employees will continue to have benefits as they are officially full time.
Liberals are claiming the cost of Obamacare is "negligible":
(Excerpt) Read more at americanthinker.com ...
I was in the office the morning after the election and over heard them discussing stuff.
I've been friends of the family for close to 25 years, so I get a lot of the inside scoop of what goes on. They told me that Obamacare will cost them about $1100 a month PER EMPLOYEE.
I don't even care if the number is over estimated by 1/2. If at half that $550 a month per person, thats $6,600 a year per person. Multiply that times 50 employees and your at $330,000.
How many small businesses can absorb $330,000???
Denny's and Olive Garden may have "changed" their minds, but in the long run they'll all jump on board.
Small franchise owners can't handle that expense, no matter what corporate wants.
In the end, you'll see a cascade affect as companies do this.
A few years ago I was out of work for too long, and insurance was running out. COBRA insurance was going to cost over $875 a month. Obamacare gives new requirements that will drive costs up more, so that $875 is probably close to the $1100 my buddy quoted.
My wife goes to a Mah Jongg party every week with some women who are not stupid (I've met 'em.) Yet . . . "The economy is getting better. Unemployment is down to 7.8%" "Where did you hear that?" "CNN".
The insurance I have allows me $1500 in yearly dental coverage alone. I have a $250 medical deductible with an 80%/20% split there after, except for major medical(which I don't know off hand)
I'm 50, so I'm using near all my dental every year. And I've paid more than my deductible for medical every year for the last at least 5 years. Plus going in for a yearly eye exam. I'm using over $1800 in insurance payments, and insurance companies aren't out there to lose money.
Now insurance companies have to carry kids until they are 26. That drives up insurance costs.
A number of years ago my insurance was running out. COBRA was going to cost $875 a month.
The IRS recently changed the definition and now if you have 100 PT employees it equals 50 FT.
I am friends with a gentleman who owns 40 or so Pizza Hut’s in various states and he told me as off January 1st of this year all his employees except for management were getting 28 hrs. a week.
I work at community college which are notorious for hiring temporary full time and temp. part time help. In December they fired every full time/temp help and told them in January they could come back but only for 20 hrs. a week and they would never get over 80 hrs. in a month because the college did not have funds to pay into their retirement accounts which according to the HR office they now have to pay if any employee gets 100 hrs. in a 30 day period. The result, lots of unhappy little liberals angry at their king in Washington. Oh well, watching liberals squirm is pleasant...
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