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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AND THIS IS ADMINISTRATION CLAIMS THEY WANT TO CREATE JOB! THIS IS WHAT WILL HAPPEN WITH OBUMADON'TCARE!
IT'S JUST THE BEGINNING AND WE HAVE FOUR MORE YEARS.
GOD HELP US
PIG ROAST DEBATE/ PRESIDENT BUSH
i know this has nothing to do with this article but someone please im begging you help me find the video clip of president george w bush during a live televised debate ( i think with the chancellor of germany) where he cant come up with an appropriate answer to the question so his response was something along the lines of " i sure cant wait for that pig roast tonight" i have searched everywhere and cant find it. it has to be in the top ten funniest things ive ever seen. please please please give me a link to it. i would be forever grateful.
The new Obama Care program will destroy the Americn Economy, but that appears
to be part of the plan. I would like to thank the 51% of the Americans that voted for
this mess. You are killing the goose that lays the golden egg.
A small price to uncrowd our hospital emergency rooms where the resources are used up by non-paying clients without insurance or any means to pay.
I find it amazingly stupid for a company to make a public statement like this, even if they are doing it.
At least half their customers are likely to disagree with them, perhaps strongly enough to cease going there?
The capitalist, libertarian view would have us living like they do in India, with a privledged upper class on one side, and lepers in the street on the other. I'd prefer "single payer" insurance, but thanks to our do nothing Congress that didn't happen. So, "Obamacare", will have to do.
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[BRIEFING.COM] The major averages ended the midweek session with slim gains after showing some intraday volatility in reaction to the release of the latest policy directive from the Federal Open Market Committee. The S&P 500 added 0.1%, while the relative strength among small caps sent the Russell 2000 higher by 0.3%.
Equities spent the first half of the session near their flat lines as participants stuck to the sidelines ahead of the FOMC statement, which conveyed no changes to the ... More
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