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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once again CORPORATE GREED prevails, I will be boycotting all Wenchy's from this day, on.
One thing, you schmucks, Onefungi, need to realize that if the independent owners didn't live in a lifestyle they cannot afford, then their employees could have health care. I own three businesses and I didn't have to have the government tell methat my employees needed healthcare. I've always had it by joing a co-op group where we get the coverage at a great rate as if we're a large company.
There are ways to be fair and decent to people without being a total **** because you wnat to live like a movie star.
wow...there's going to be an awful lot of pissed off illegal immigrants that get their hours cut AND no freebee healthcare!
Just keep listening to the rich, they will lead you to the desert oasis. Darn, they have to cut people's hours so they can make $10 million instead of $9 million. Now that is the new american way. If we took the top 1000 CEOs and cut their pay by $1million each we could pay for health care for every worker couldnt we. That would be an addional $1billion to pay for health care. Wow but you wacko righties keep fighting cause that $1million dollar cut to the 1000 top CEOs would mean they only would make say $19 million vs. $20 million a year. bunch of idiots. Keep on working for nothing and keep giving CEOs double digit raises for cutting your living standards. Yep in the last 20 years managers have gotten triple to quadrouple digit raises while your standard of living has diminished. right wing wacko thinking has gotten us to where we are NOT OBAMA. How many Bush's are needed to hide the truth? *just 2- George H and George W...........
Owners stop being so greedy and let your workers have healthcare.
just one way Obumer bringing down the country,you haven't seen anything yet''
People don't work and guess what....they get a free pass. People don't work and guess what....they pretty much get free health care. People don't work and guess what.... they get their groceries and utilities paid for. I work 70 hours a week and have to pay higher taxes because I want to make more money to support my family and give them things they deserve....guess what..... I get to pay for those who don't work. I have health insurance and hate going to the doctor because it still costs me a fortune. I'm glad that I can work to pay bills for lazy people who do not care to work. This country is ridiculous. I am proud to be an American, but I am not proud to be any part of our political system.
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