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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****. Reduce your employees to 49 and that fixes the problem.
Also I will gurantee that not all of his fifty empolyees are full-time or work more than 30 hours per week.
Hate Obama alln you want. not only did Democratc elect him , but you GOP ****s could not even muster one legitimate candidate that could defeat a vulnerable president in a weak economy. You want to blame omebody for Obama. Look in the mirtror..
How manf fast food places actually provide insurance?
Wendy's has terrible customer service. They never get our order right and it never is a complicated order either. I would think cutting down staff hours and working with smaller teams or employees isn't going to help them in the long run as they lose business because of bad service.
I think what you are all missing is that fact that the people who are cutting hours to eliminate the cost of providing health care, are only doing it so they don't have to pay the penalty ( 2,000.00 per employee tax) they will have to pay for not offering it. They have options, they don't have to offer a GM type program, they just have to offer something. The employees can choose if they want the employer plan or the government sponsored option. If the employees opt for the government sponsored program the employer is no worse off than he is today. There is not cost to him.
I am so sick of everyone commenting on what they think they know. Go out and read it, take a seminar, do something except complain about something you only think you know because you listen to the politicians and health care industry and business owners rhetoric. They have one reason for keeping mainstream America upset over "Obamacare". They don't want to pay for because their personal earnings will be impacted.
I challenge each of you who are buying into the Obamacare debate to get all the facts before you bash it. I personally and tired of paying out of my pocket, for bad decisions people make who dont want coverage and wont pay for it, but will surely show up on the ER doorstep when they are sick. Everyone needs to be responsible for themselves. I say sure, give them an option, take the employer coverage, take the government program, or pay a tax at end of year.
And for you folks who are next going to say, hang on, what about the low income families that can't afford it. They are covered. There is a household income level that you have to cross before you would be penalized for not taking the coverage.
Looks like we will be doing our eating at somewhere else that will treat their employees right. I bet the owners have their healthcare! Greedy!
Sadly, US has become a country where it is more advantageous to live off the state than work. Something's gotta give.
We are americans, we are strong, and our will will not be broken.Its sad to see what our countrys become.Instead of being a strong, hard working nation that if you put the effort in, you could relize your dream. However we've become a nation who rewards failure and lazyness.
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A basic income policy can actually ensure a decent standard of living for everyone.
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