Wendy’s franchise cuts hours to avoid Obamacare
The action is the latest in a series of challenges against next year's implementation of the Affordable Care Act.
The small-business backlash against Obamacare continues. A Wendy’s fast-food franchise in Nebraska is cutting the hours of non-management employees so its owners won't be required to pay health benefits.
The local franchise vice president in Omaha tells WOWT-TV the cuts are coming in several weeks’ time because he cannot afford to pay health insurance for all his employees.
Starting next year the U.S. Affordable Care Act, also known as Obamacare, will require employers with 50 or more full-time employees to offer full-time workers "minimum essential" healthcare coverage. The Act defines a full-time employee as someone who works at least 30 hours a week.
As a result, about 100 Wendy’s workers in Omaha have been told their hours are being cut.
"It has a huge effect on me and pretty much everybody that I work with," T.J. Growbeck, who currently works 36 to 37 hours a week at the restaurant, told WOWT. "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."
Wendy's spokesman Denny Lynch told the Huffington Post the decision was being made at the franchise level.
"Our franchisees are independent businesspeople, and they make the decisions regarding their restaurant teams," he said. "As small-business employers, our franchisees are facing rising food and operating costs and many new government regulations."
While Wendy’s says the hours-cutting action by its Omaha franchise is not "a company decision," several major restaurant chains have been very vocal in their criticism of Obamacare.
A case in point: Papa John's (PZZA) CEO John Schnatter said the Affordable Care Act would cost his company up to $8 million a year, which would force him to increase product costs and cut workers’ hours.
Other restaurant franchises, meanwhile, are also looking at options ahead of Obamacare. John Rigos, owner of a Five Guys franchise in New York City, told CBS News the new regulations will affect hiring policies at his restaurants.
"It'll probably have to reduce the staff to some degree," he said, "and again, focus on building [a] smaller stronger team rather than being as aggressive in opening up new stores and creating new jobs."
Rigos said while he "absolutely" supports Obamacare, he still finds it challenging.
"There's 25,000 restaurants within the New York City market we're competing against," he notes, "so it's not like we have surplus profits that we could just earmark a portion of them to go toward these types of initiatives."
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Attack and destroy free enterprise. Then blame free enterprise for its own destruction. Replace with socialism and other false "progressive" rubbish.
How many of you have heard, time and time again, that government regulation somehow saved us from the Great Depression and the predations of capitalism? It's a complete lie, but you hear it all the time and I'll bet that more than half of you actually believe it.
This is an old formula, folks. Read up on Gramsci.
A well trained chimpanzee could do a better job than most of their employees. The never get my order right.
So what if you raise prices a dime or two.
The taxpayers are picking up the tab for people that don't hsve Health Ins.
- business owner cuts hours of dependable skilled workers to achieve goal
2) business owner must hire more workers to cover additional part-time shifts
- negative effect on productivity
- increase in training cost
3) business owner's best employees seek and achieve better employment elsewhere
- see point #2
Logically, it seems as though this is an emotional knee-jerk decision instead of the sound business decision its dressed up as; because these decisions seem to lead to a perpetual increase in operating costs.
Lesson: Bad business owners are bad.
Source: Capitalism 101 -and- Lipstick on a pig = cute pig (if you're into that)
elections have consequences and this is exactly what the people that work at these low paying intro jobs voted for.
they are getting exactly what they voted for.
Wow. Fast food companies aren't offering health insurance to their workers. Have they ever?
Considering US taxpayers (thru Medicaid) have been paying for the health care of fast food workers from the beginning of time, what has changed?
**** Lib's have no clue about running a business much less a country. There will be thousands of people of not millions having their hours cut due to the ignorance of this regime.
Maybe we need to cut their hours back, say 100%.
Step 1: Say you will not raise taxes across the board for everyone; Then raise taxes 2% on "everyone.
Step 2: Say Obama care will lower costs; then implement it and have it raise costs through government regulation.
Step 3: Realize that everyone will slowly realize they've been lied to again and will be out for politicians blood; Then push to disarm your citizens whom they now fear using a .001% death rate as an excuse.
Never thought I'd say this, but I'm glad that I'll most likely "go-under" before the coming storm hits.
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