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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These employers are raking in profits and sharing very little with the people who made the profits in the first place. Wendy's owners are lining their pockets while depriving their employees basic benefits.
Guess where I will no longer be stopping for lunch. Running a business and robbing your employees the basic dignity of a living wage and benefits should be a crime. Here is my wish: that these fat cat owners end up on unemployment!
Ok, I'm a Republican. To fix out of control healthcare costs, give people an incentive to take care of themselves. Get the flu, sucks. Get out a blanket, Vitamin C, Zinc, and a few good movies. How about health insurance that advocates gym memberships? Until you kill the Cheetoes and Diet Coke, we will still be fat and over medicated.------------------------------------------------------------------------------------
The Republican fix, LOL.
I wonder how many of these employees voted for Obama? Like I "tried to" reason with my daughter's boyfriend.....ask your small business owner who he is voting for because you don't want to vote for someone who ultimately will have a negative impact on your employment (i.e., getting laid-off). So much for good reasoning skills.
Again - Enough about the ObamaCare issue. Romney's healthcare in Massachusetts wasn't any better. Plus, Romney's plan was subsidized 62% by the Federal government and had no benefits for those with existing health conditions.
In our state, Blue/Cross Blue/Shield has gone up 24% in one year. You think Wendy's has problems covering for ObamaCare? Think again - think for yourself - quit letting Bill Cunningham and Michael Savage be your only source of political information.
So the rich brat owners won't be able to buy their girlfriends and wives more diamonds
They should move their companies to Mexico or the Mormon planet of Kolob
Maybe the morons that voted for Obama will relise now how bad Obamacare is and what a disaster it is going to cause.
If you think these small business owners are suffering I suggest you look at where and how they live.
Funny I didn't hear any plan from the Republicans on how to fix the out of control healthcare cost.
Oh that's right they've become the piss and moan party.
Greed Greed Greed!!!
Profits can never be high enough, employees can just kiss the back side of the owners, because it is all about the spreadsheet and the bottom line. I will never eat another Wendy's burger again until they get to work with helping their employees instead of giving them the shaft. The same goes for Papa Johns and others.
It is getting very clear about Corporate America; as to what they think of their employees. What a country! So this is what we think of each other now, how much are you worth to me?
I have 14 employees and I am working on a way to see that they are covered under the Care Act. If I had 200 I would be doing the same. See my employees are the backbone of my company when they do well and are happy the company performs better and my customers are happy. Hence I am doing well; not making Billon Dollars yet, but I make a decent living. When the economy gets better my company will get better, and when my company gets better my employees will benefit and I will benefit as well. I am an American and I care about all Americans. How can you be an American when all you care about is money? How sad is that when money is the only thing that motivates your thinking?
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[BRIEFING.COM] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.
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