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."
More on Money Now
- Is a global sushi craze emptying the oceans?
- Can Eddie Lampert save Sears?
- Allstate tries to fix a public relations blunder
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.
Oh, the cost of "free" health care and other stupid dumocrap ideas!
Ironic that obesity, thanks in part to the fast food industry is quickly surpassing tobacco as a major drain on the healthcare system.
DA Da Da Da Daaaaa I'm lovin it.
I'll bet he can still afford a Mercedes and a huge house. Basically, instead of being responsible for his employees he would rather the burden of the uninsured be placed squarely on the lap of the taxpayers (as is is now). We will all pay for this anyway people. Either the business owners help out and take responsibility or they go to the emergency room and we all pay for the bloated bill instead.
now as they cut hours, tax's taking out of their check also will be cut. i wonder if obozo thought of that, no tax's yikes, less hours less tax money. am i saying this right?
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] S&P futures vs fair value: +2.70. Nasdaq futures vs fair value: +8.50. Equity indices are on track to begin the Tuesday session on a modestly higher note as futures on the S&P 500 trade almost three points above fair value. Futures spent the bulk of the overnight session just below their flat lines, but returned into positive territory during the past 30 minutes. There was no news coinciding with the move, but it is worth mentioning that Germany's DAX (+0.5%) climbed ... More
More Market News
Shares of DVR pioneer TiVo are up 40% over the past 2 years, but unlike with the industry giants, there's still plenty of room to run with this pay-TV play.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'