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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So if employers keep their work force under 50 employees they don't have to provide healthcare...Hmmm two things here one you now have an unemployed American without heathcare, is that what they teach at Harvard Mr. President? To those who voted Obama in office...well suck on that!!
Most if not all small businesses are doing exactly like this Wendy's franchise, they just don't talk about it. The more regulations you make, the more games people will have to play to survive. In the end, most of these laws will amount to squat. If it is good to have businesses provide health insurance, then why not make ALL businesses provide insurance. Why the arbitrary cut off at 50 employees? Why not cut it at 49 employees, or at 51 employees? From now on, small businesses will make sure they have less than 50 employees. They will definitely think twice before hiring the 51st employee. This policy will only hurt the poor and the young who are still back in the line waiting for a job to open up.
we need have a system like the beauty colleges have. You can get bad hair cuts from students just learning real cheap.
beginning medical student would have some one to learn on and these people would get at least some medical treatment cheaply.
I find the commentary laughable to think that a President can be called Tyrannical or a Socialist simply because he wants all Americans to have health care and is putting the onus on wealthy business owners to do so. If Obama's biggest mistake is providing health care options for all full time employees then he will go down as one of the greatest Presidents of all time. The fact that people like Papa John (a multi-millionaire 50 times over) complains about 8 million in rising costs is a complete and utter joke. Raise your pizza prices by .50 cents and that 8 million is covered moron. The fact that other than Apartheid S. Afica, the US is the only country not to have a universal health care initiative for all citizens is a complete travesty and anyone that doesn't believe in that cares more for him/herself than the country and all it's people.
This is just the beginning. These people will ultimately suffer much more before Obama is done ripping thier lives to pieces. They asked for it. How's hope and change feel now dweebs.
Since when do we get the right to walk into a store, take whatever we think we need and walk out, leaving the bill to be paid by others in the form of higher prices? That is called shoplifting.
The mandate for care is essentially government approved shoplifting by uninsured people, can you believe that?
This is why we have ever increasing prices, the number of people who realize they can shoplift healthcare services has increased. It proves the greed factor, why buy insurance when the government allows you to steal the health care anyway?
Unfortunately the stealing will not end, uninsured will pay the penalty for not having insurance, and, continue to steal extremely expensive health care, all approved by our dumb**ses in government.
To all you Conservatives and "1%" business owners that want to keep more in your pockets instead of paying employees a living wage. Wake up and stop listening to and believing your own propaganda....
Here's what is true.... people will seek out medical care when they need care (from ear aches to heart attacks) at the only place they can without asking for money upfront...the local hospital emergency room.
What happens next is simple. Everyone that has health care or can afford to go to a hospital or see a doctor in his office will end up footing the cost of all those folks that didn't pay the hospital, the technicians, and the doctors.
The next time you go to the hospital the hospital will charge more, the technician will charge more for the x-ray, and the doctor (who also has a private practice) will charge more at the hospital and also at his office.
ARE YOU ALL LIVING IN SOME PARALLEL UNIVERSE. EVERYONE OF YOU WILL END UP PAYING THE BILL FOR EVERYONE THAT IS WITHOUT ANY HEALTHCARE INSURANCE THROUGH INCREASE COSTS IN A "FOR-PROFIT SYSTEM" .........
Health care will come down if FIVE things happen. First, you expand the Risk Pool to include everyone. You create a healthcare system which everyone is part of to even include; private insurance, the military, Medicare, Medicaid, workman comp, etc. and spread risk between everyone. If you don't want the government running the program than let an insurance company run the program but not before you return insurance companies back to "not for profit" companies like Blue Cross Blue Shield used to be where the system worked perfectly. Second, you make drugs affordable (paying $1.00 for a pill in Canada, France, England, etc. and charging American's $20.00 for the exact pill is nuts). In fact, many of the drugs that drug companies earn money from actually came from university and our federal drug agency's that discovered the drug and give it to pharmaceutical companies to make. Third, you have to cut the waste, the overcharging, the duplicate and triplicate test out of the system. Fourth, have the government provide the medical malpractice insurance (for profit insurers are gouging doctors) so doctors can charge a reasonable fee for their services (same for the hospitals). Fifth, our healthcare system needs to be returned to the "not for profit" system that covered everything, and worked smoothly before Reagan changed everything and when companies provided affordable healthcare for everyone. Healthcare has gone downhill since it became a 'for profit" system.
How on earth did the small hardware store I worked for 20 years ago afford to offer healthcare for its 8 employees?! Oh yeah, my boss wasn't a TOTAL greedy a-hole & actually gave a crap about the people who worked for him.
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