Obamacare has more companies opting for part-timers
They're making this move to avoid paying for full-time workers' health insurance under the Affordable Care Act.
Another national company says it's reducing the number of hours many of its employees will work, making them part-time staff, thanks to Obamacare. Scheduled to go into effect next year, the Affordable Care Act (ACA) is expected raise health care insurance prices, according to recent studies. As a result, a growing number of American businesses are opting to switch workers to part-time status.
AAA Parking, the latest company to react this way to Obamacare, manages more than 200 properties across the U.S. and employs over 1,500 people. AAA recently announced it will move about half of its 500 full-time, hourly employees to part-time status next month in response to the Affordable Care Act.
According to the Atlanta Business Chronicle, a company memo said executives had "spent extensive time evaluating the impact of this mandate, and the financial impact for AAA Parking is dramatic."
The company told the Chronicle that upholding the new laws would require it to make "substantial changes in our hourly staffing models, or suffer an enormous and unsustainable annual net loss," costing AAA Parking over $1.2 million annually in cut employee hours.
Under the ACA, companies with at least 50 full-time employees will have make "qualified" health insurance coverage available to those workers and their dependents. Close to half of U.S. retailers, restaurants and hotels will be touched by this part of the law. And Armand Balsano, managing director at the Atlanta offices of business advisory firm Navigant Consulting, said that's where the unexpected and undesired effects of ACA will kick in.
In particular, Balsano told the Chronicle, companies with low-wage workers are employing more part-timers over full-time employees to avoid potential ACA penalties.
And having a majority of your employees as part-timers opens up another can of worms. "There are a lot of businesses that don’t work as well without full-time people," said Tony Holmes, a partner at Mercer Health & Benefits. "You might think you can save money by avoiding the health costs or penalty, but at the end of the day, trying to get stuff done with part-time people may not lead to business growth or success."
The New York Times Economix blog notes that, compared to the official start of the recession in December 2007, currently 5.8 million fewer Americans are working full-time, but the number working part-time has increased by 2.8 million.
Most of these changes are apparently attributable to the changing economy and not directly to companies reacting to the ACA. But as The Times notes, while part-time workers are still a minority in the U.S. work force, "their share is growing."
I wonder how many of the workers getting demoted to part time staff at this company and the countless others in the media due to Obamamcare would vote for him again. Does anyone else see the irony here?
Most of these PT workers will still make too much money to get Obama Care for free, so they will have to pay for this expensive care out of their own pocket from a smaller paycheck or get fined by the IRS.
Liberals never think of the consequences of their actions and react based on emotions to any crazy lie they are told. Sheeple never will learn. This is too funny as they got exactly what they voted for, so let the whining begin.
We have held our employment the same for 3 years. When we are busy, everyone works overtime. Currently it is averaging 5%, which could be 5% more employees, but it won't. If business picks up we will take the money earned over the last 4 years and invest it in automation, deferring the need for more employees further. Also looking at outsourcing some work to other companies and overseas or in Mexico. Thanks for a great law...NOT!
There was an article near the end of last week that talked about how there are less publicly-traded companies now than there used to be. This is probably a long term trend, too. When you look at the crap you gotta put up with from the pols and the SEC, plus all the disclosure regs and filings, it just makes more sense in many cases to remain a privately-held entity.
NO surprise here. Duh, who would re-elect those liberal socialist fools. The Dumb electing the Dumber. Shameful - haven't been able to fly my flag going on 5 years now. Very sad for our servicemen and women who are laying their lives on the line for a country that is voluntarily giving away its rights and freedoms on a daily basis.
Any time the laws create an artificial threshold, the people will find a way to avoid it. Cutting your workforce back to part-time is a no brainer and an obvious "intended" reaction created by this law. You'd have to be blind not to see this coming.
Companies are no different than people - they try to save money any way they can - duh. In fact, I'll let you in on a little secret. Companies are actually run by "people" who are paid to help make the company successul (profitable). But, who would want to work for a profitable company anyway. Much better to work for those bankrupt companies.
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