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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Here is one option to Obamacare. My company which has been in crisis since Obama was voted in, is considering closing its doors The company is 65 years young and may not make it due to higher tax rates , healthcare (which by the way have always had healthcare until 2 months ago.) , fuel pricing, workman's comp, general liability, state tax, EPA, etc. etc. etc.
Obama has been out to get the small business since his election. We worry his new tax might be ....to tax small companies for closing their doors.
NOTE: Upon checking spell check, the spell check wants me to correct Obama with Osama.
Consider that the real reasons are completely reversed!
There are almost NO TRUE POOR in America, no one is starving, there are a multitude of programs that address that.
No one is freezing, same story, many low income and welfare driven programs for that.
Housing .......... same.
Education ............. free.
These programs don't even come close to explaining the 10's of thousands of tax free charitable organizations that the real taxpayer already cover the expenses of their wear and tear on the national infrastructure.
Healthcare in emergency situation has been available with or without insurance or even citizenship for a long time.
This is really about people who started the phrase: "but, I'm worth it" and proceeded to indebt themselves and family, by abusing credit and claiming that "WANT and NEED" are synonymous.
New cars that they literally can not afford to maintain or insure, every creature comfort and toy that they saw someone who could actually pay for to have, buy on credit, "we deserve homes with less than nothing down", people who insist that traits like charity were common enough to claim as "HUMAN" when reality says that less than 15% of the humans on the planet subscribe to that trait!
GREED is the correct word, it is just those who claim they saw a Star Trek movie in which everyone had everything for free and it was the perfect utopian society.
You don't NEED, you just WANT and were taken in by the carnie sideshow barker that promised you what he can not supply!
Well, no more Wendy's for me! Never did have a Papa John's pizza, but have been a Wendy's customer for quite a while. Geez, the more fast food chains that cut back on their employees hours, the
healthier I'll eat. Win, win!
This guy is a jerk.
Just raise prices a dime or two.
This will lower welfare costs,otherwise the taxpayers pay.
In 2011 Papa John's net income was slightly over $55 million. Having to fork out $8 million to provide healthcare coverage for all of their employees would only leave them $47 million a year in profits, which would be devastating to the point that CEO John Schnatter might have to take a pay cut from his almost $3 million a year to $2 million a year...how in the world will he ever survive on that? He might even be forced to sell some of his stock in the company valued at almost $240 million. Dang, just with his stock alone he could cover every Papa John's employee for 30 years.
Folks, all of their rhetoric stems from greed, not job creation. I hear it from a CEO that I sit next to in the boardroom. They want to keep excessive profits and let average Americans foot the bill for uninsured hospital visits in the form of higher taxes and increased medical expenses for all. If we allow employers to not cover their employees, that is basically a bailout for them. Think about it.
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