A Nebraska fast-food chain is slashing employee hours so franchise owners don't have to pay health benefits. Around 100 Wendy’s workers have learned their hours are being cut. A spokesperson says a new health care law is to blame.
“Thirty-six to 37 hours a week.” That's how many hours T.J. Growbeck works at the 84th and Giles Wendy's restaurant. The money he earns helps him pay for the basics, but that’s not the case for all his co-workers. “There are some people doing it trying to get by.”
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.
READ FULL SOURCE ARTICLE: 01/06/2013
Editor's Note: Of course, Mr. Burdette doesn't understand the law. Under Obamacare, the IRS ads up all of the part-time employees hours and divides that number by 40 to determine the number of "full-time" employees. Fines are based on that number, not the actual number of full-time employees. But there is a solution. If you are a small business owner looking for a way to save your company, email us here and we will put you in touch with people that can help you almost immediately...
The BasicsProject.org informational and educational pamphlet series is now available for Kindle and iPad. Click here to find out more...
The New Media Journal and BasicsProject.org are not funded by outside sources. We exist exclusively on tax deductible donations from our readers and contributors.
Please make a tax deductible donation today.