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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Today I got a letter from United Healthcare … they’re telling me to change my son’s asthma medicine to another brand because of the price. I guess under our new “health care system” insurance companies now have the right to make decisions about what's best for us? That’s really too bad … because what’s best for us is really something that’s between you and your doctor.
like the post on all the people who voted for this joke president should foot the bill and us 49% who didn't should get a waver, we didnt vote for this joke why we need to pay for his mistakes and lies
i can not understand the narrow minded thinking? Every one needs health care. Papa John 14 cents more for a pizza will not make a difference to the average customer.. if i buy your pizza it is because i like it. All the other pizza places will be providing medical for their help and will have to pass on the cost. which levels the playing field. What would you do if the price of cheese went up? This is no different. Oh well you can cut hours and let the taxpayer pay your help with food stamps, medical, and public assistance. Oh i forgot you are a taxpayer too.
You forgot who blocked the President's bid to prevent taxes on the Middle Class..yes!!! the GOP. At least the President was able to negotiate the tax at the $400,000 level, so do you make over $400,000?.....I seriously doubt it...so what are you complaining about! Finally, when your Medicare, Social Security, and un employment Insurance go away...you will blame the Government and not the GOP..so much so your safety net......I recommend more reading and less talking and writing.
It is so screwed up. My wife and I are spending all we want on Credit. Our lives will over sometime soon, Due too old age. I feel sorry for the young people that will never get to Know America. I do NOT feel sorry for the bank we Will stiff with Debt. You voted for IDIOT now live with it HELLO BELIZE
The law should not have exempted part time employees. If they had said every employee irrespective of hours had to be provided healthcare it would have eliminated a lot of this part time work 12 jobs **** that our employers are pushing and instead made less jobs but more full time jobs. We already have a problem with too many part-time jobs and this will add to it
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