for Cuts to Employees' Hours
The White House may brush off evidence of employers cutting workers' hours because of Obamacare as anecdotal, but tell that to a Maine franchise owner and one of his employees interviewed by NBC News:
Employers around the country, from fast-food franchises to colleges, have told NBC News that they will be cutting workers' hours below 30 a week because they can't afford to offer the health insurance mandated by the Affordable Care Act, also known as Obamacare.
"To tell somebody that you've got to decrease their hours because of a law passed in Washington is very frustrating to me," said Loren Goodridge, who owns 21 Subway franchises, including a restaurant in Kennebunk. "I know the impact I'm having on some of my employees."
Goodridge said he's cutting the hours of 50 workers to no more than 29 a week so he won't trigger the provision in the new healthcare law that requires employers to offer coverage to employees who work 30 hours or more per week. The provision takes effect in 16 months.
Luke Perfect, who has worked at Goodridge's Kennebunk Subway for more than a decade, said it was "horrible" to learn he was among the employees whose hours would be limited, and that it would be a financial hardship. "I'm barely scraping by with overtime," he said.
Of the nearly 20 small businesses NBC News interviewed, "almost all said that because of the new law they'd be cutting back hours for some employees."
Last week, the White House used the restaurant industry to claim that this couldn't possibly be happening. I found it telling that it focused on a single industry. Jed Graham at Investors Business Daily found a few industries where reduced employee hours did match up with Obamacare's implementation:
Among retail bakeries, home-improvement stores and providers of social assistance to the elderly and disabled, the workweek for nonmanagers has fallen to record-low levels -- by far.
At general merchandise stores, department stores and discounters, the rate at which the workweek has fallen since early 2012 is way off the charts relative to prior data going back to 1990.
But remember, correlation doesn't equal causation. To get a better understanding of what's happening, we need stories like the NBC News one above as well as other instances of employers in a variety of sectors announcing cuts to workers' hours due to pressure from the healthcare law.
If you want something more big picture, USA Today reported, "Since March, the ranks of part-timers have swelled by 791,000 vs. 187,000 for full-timers."
Until the White House acknowledges this problem and Congress fixes the law to return the definition of "full-time" to the traditional 40-hour workweek, we'll continue to read stories of employers cutting hours as a response to Obamacare's perverse incentives.
This article was originally published at FreeEnterprise.com. Refer to original article for related links and important documentation.
Sean Hackbarth writes for FreeEnterprise.com, a publication of the US Chamber of Commerce.
READ FULL SOURCE ARTICLE: 08/15/2013
Editor's Note: Killing the US economy; killing the US middle class, so that Progressives can say they have covered those who cannot afford insurance with insurance, even though those who cannot afford insurance can still get medical treatment by law? Is this not the height of stupidity?? But hey! Republican establishment types! You just keep letting this garbage piece of legislation move forward...MORONS!
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